The Pakistan Telecommunication Authority (PTA) has described the high taxes imposed on the telecommunications sector as not only a burden on telecom users, but also an impediment to Prime Minister Imran Khan’s vision of a “Digital Pakistan.”
PTA has resolved to continue persuading Pakistan’s government to rationalize telecom taxes.
According to official documents obtained by a blog website, PTA believes that higher taxes have been imposed on Pakistan’s telecom sector, both in comparison to taxes imposed in other regional countries and in comparison to taxes imposed on other sectors within the country.
The documents read: “As a regulator, PTA believes that the ‘Digital Pakistan’ vision requires a boost in broadband proliferation and telecom access. The achievement of this goal demands the availability of cheap handsets and affordable telecom services, which is not possible sans reduction in prevalent taxes.
As such, PTA will continue to persuade the government of Pakistan for continuation of the said tax relief and further rationalization of telecom taxes.”
It is worth noting that PTA’s long-standing efforts to persuade the Government of Pakistan to rationalize telecom taxes resulted in tax relief being extended to the telecommunications sector as not only a burden on telecom users, but also an impediment to Prime Minister Imran Khan’s vision of a “Digital Pakistan.” sector and consumers in the federal budget 2021.
Incentives such as exemptions from Federal Excise Duty/General Sales Tax, withholding tax, and SIM tax, as well as the awarding of industry status to the telecom sector, have only recently begun to bear fruit.
To read our blog on “PTA clarifies a misunderstanding about hefty smartphone taxes,” click here.
