Broadband services, internet devices: Senate body for reducing taxes and duties

ISLAMABAD: The Senate Standing Committee on Information Technology and Telecommunication on Thursday recommended the Federal Board of Revenue (FBR) to reduce taxes and duties on broadband services and internet devices, which is causing more loss than meager benefits in terms of revenue.

The Senate body held a meeting with Senator Rubina Khalid in the chair at the Higher Education Commission (HEC) Secretariat to discuss the internet connectivity problems in online learning being faced by students of remote areas.

The committee was informed that around 32 percent tax is being charged on broadband services, and it should be reduced and the duty on internet devices should also be reduced, so that the common man can afford it.

The Senate body observed that internet devices and technological gadgets are costly due to high liabilities and taxes on them.

It recommended that the PTA and the FBR must join hands and deliberate on ways to provide students with affordable internet devices and technological gadgets.

It stressed the need for enabling schools and colleges to replicate the efforts made for online higher education, so that e-learning could be promoted at all levels.

The chairperson committee directed the chairman FBR and the chairman Pakistan Telecommunication Authority (PTA) to sit together and look into the matter. "We are getting few billion rupees in taxes, which are a small increase in revenue, but the loss is huge," she said.

Besides the committee members, the meeting was attended by Chairman HEC Tariq Banuri, Executive Director HEC Dr Fateh Mari, Rector National Academy of Higher Education Dr Shaheen Sardar Ali, vice chancellors of various universities, and representatives of Ministry of Information Technology, the Pakistan Telecommunication Authority (PTA), and the Universal Service Fund (USF).

The committee expressed strong concerns over the cut to the higher education sector funding and recommended for an increase in the budget as per the sector's requirement.

The chairman HEC briefed the Senate committee on the steps taken to execute the Learning Management System (LMS) in the higher education institutes. Since the closure of universities due to COVID-19, the HEC has been actively trying to minimise the disruption in educational activities.

He elaborated: "Broadly, there have been two major issues. One, majority of faculty did not have online teaching background. Two, students faced internet connectivity issues." He highlighted the efforts made to train the faculty members to improve the quality of their lectures and their way of virtual teaching.

He also informed the Senate committee that the HEC had been in contact with telecommunication companies through the Ministry of IT and the PTA to ensure internet connectivity with subsidised internet packages for students. To this end, telecommunication companies are now offering student packages.

"HEC is putting additional efforts to ensure facilitation of internet-deprived children."

He added that the HEC had also proposed to the government to establish data centres in different areas, so students may have access to information. He revealed that the HEC has provided the universities with detailed policy guidelines on various issues, including conduct of entrance examinations, laboratory work, and all other essential academic activities amid the situation created in the wake of COVID-19 outbreak.

The vice chancellors underlined the measures taken to promote e-learning and online classes through LMS. They appreciated the HEC's role in making the transition easier.

However, they also pointed out the hardships, universities are confronted with, especially in terms of payment of salaries and meeting other expenses as a result of the recent cut in the HEC funding.

The PTA representative apprised the Senate body of its efforts to ensure internet connectivity as well as availability of required gadgets. The USF representative also informed the committee about various USF projects being executed in far-flung areas to make internet accessibility possible.

Expressing concerns over financial hardships faced by universities, Senator Rubina Khalid stressed the need for an immediate increase in the higher education sector's funding in order to make education affordable and accessible to all.

She vowed that the Senate body would take up the issue in the next Senate meeting. She said the higher education sector must have an allocation that was compatible with its requirement. The additional secretary of the Ministry of Education said that the World Bank had a plan of $250 million, which would be spend on education during the corona pandemic.

The Planning Commission has also solicited proposals from the provinces for $230 million. The World Bank has provided a loan of $200 million at a concessional interest rate, of which $30 million will include donor contributions.

Copyright Business Recorder, 2020