- The Economic Coordination Committee (ECC) of the Cabinet has agreed to reduce taxes in the Telecommunications sector by setting a sub-committee to resolve this issue.
The Economic Coordination Committee (ECC) of the Cabinet has officially agreed to resolve the long-standing issue of tax reduction in the telecommunication sector on Wednesday.
In a meeting headed by Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh, the ECC of the cabinet constituted a sub-committee to reach a consensus on giving tax incentives to the telecom sector.
The sub-committee will include the Adviser to the PM on Revenue, Adviser on Institutional Reforms and Austerity, Advisor on Commerce, and Minister for Industries and Production and it will prepare a modified proposal for FBR’s response for final approval.
The Ministry of Finance issued a statement stating that “in order to facilitate the telecom sector by the waiver of certain taxes, the ECC decided that the proposal may be granted approval in principle.”
This was the third time the IT Ministry had requested ECC to take a decision on abolishing 12.5% withholding tax, decreasing minimum tax to 3% from 8%, reducing federal excise duty to 16%, removing the Rs250 SIM card activation charges and decreasing the additional customs duty to 3%.
The telecom sector has been playing a huge role in facilitating the delivery of online education and healthcare services during the COVID-19 pandemic. Hence, it is crucial to resolve this tax issue related to the telecom sector on an urgent basis.