The president of the Pakistan Businessmen's and Intellectuals Forum (PBIF), Mian Zahid Hussain, has proposed that the government should reconsider heavy taxation which he said is hitting revenue and quality of service. He said growth in the telecom sector is imperative for boosting GDP and reducing poverty.
Mian Zahid Hussain said that heavy taxation is discouraging investment in this sector but a European company has planned to invest 400 million dollars in Pakistan, and it should be given all the facilities for the effort. He said that the telecom sector has great potential which is yet to be realised. According to an estimate the sector will attract investments of over two billion dollar until 2020 and it will contribute Rs 620 billion in taxes. The number of subscribers will jump to 160 million, he added.
The business leader said that the sector earned Rs 446 billion in 2014-15 and Rs 452 billion in 2115-16. It paid Rs 126 billion as taxes in 2014-15, which jumped to Rs 157 billion in 2015-16. He said that the telecom sector had paid Rs 243 billion in taxes in 2013-14, which indicates that heavy taxation has damaged its capacity, and this is a matter which should be considered by the policymakers.
The number of people seeking high-speed broadband has jumped to 25 million after the launch of 3G and 4G but quality has been disappointing in many ways, which is an impediment in the way of the digital revolution in other countries. It is estimated that usage of broadband will jump to 44 percent by 2020 which will push GDP up by 4.1 percent for which government should resolve the issues of this sector and ensure production of mobile sets in the country, he demanded.
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