Despite of repeated orders by the Chief Minister of Punjab Shahbaz Sharif and Finance Minister Ayesha Ghause, the Finance Department of Punjab has refused to stop the Punjab Revenue Authority from collecting taxes on mobile internet services and data roaming.
It is confirmed from PRA, that presently they are collecting 19.5 % GST on data services with exceeding speed of 2Mps or above PKR 1,500 connection which include 3G and 4G services, and will continue this until an official notification is received from the Provincial Government.
Although, the Finance Minister Dr. Ayesha Ghause had announced the removal of mobile internet taxes on the floor of the House in her budget on 12th june, while the PRA says that in order to stop the levying tax we need an official notification from the Provincial Government.
Officials at the PRA, who wants to remain unidentified, have blamed the Punjab Government for being insincere. They also said that the Punjab Government only showed public that they are in favor of removing mobile internet taxes but publically they asked bureaucracy to continue levying it.
Mobile operators officials have also blamed the Provincial government for being disingenuous and they have suggested to release an official notification to stop PRA from collecting the tax.
Tax collection in the telecom sector has been a graceful and often debatable topic. On one hand the telecom industry presents a well-documented and fruitful industry for the government for easier collection of taxes,
Tax collection in the telecom sector has been a delicate and often controversial topic. While on the other hand it pressurize the sector by too much taxation from further investment of large portion of its revenue into advance infrastructure