AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)
Follow us

ISLAMABAD: The government is likely to announce a relief package for telecom sector in the budget 2021-22 including the status of industry, reducing advance income tax on mobile phone users from 12.5 percent to 10 percent, and further reducing to eight percent in 2022-23, the federal excise duty from 17 percent to 16 percent, abolishing sales tax of Rs250 on SIM cards, and reducing services tax on telecommunication companies from eight percent to three percent.

This was exclusively confirmed by Federal Minister for Information Technology and Telecommunication Syed Aminul Haq, while talking to Business Recorder, here on Wednesday.

The minister said that the government in principle had agreed on the industrialisation of the telecom sector and the gradual reduction of various heavy taxes imposed on the telecom sector and mobile phone users.

However, a reminder was sent to the chairman Federal Board of Revenue (FBR) for including these measures in the budget proposals.

Further, he said that a meeting was held with Finance Minister Shaukat Tarin on these matters, and he assured to incorporate these incentives in the finance bill.

This will be a major achievement that will directly benefit not only mobile phone users but will also help spread the spirit of digital Pakistan to remote areas of the country, he added.

Haq, earlier in March 2021, announced that the government has approved the introduction of a simple and easy tax system and exemption of the telecom sector from all withholding taxes and complex collections.

The cabinet has approved reduction of four percent customs duty and nine percent regulatory duty on import of telecommunication equipment.

Further, instructions have been issued to the FBR to reduce taxes from 20 percent and seven percent to five percent and three percent, respectively, on raw materials of optical fiber cable manufacturing industry, he added.

Telenor Pakistan CEO Irfan Khan has also expressed optimism that the government would lower tax burdens on consumers and operators, and increase spectrum availability.

In an online discussion with Julian Gorman, head of APAC, at industry association, GSMA,

Khan said Pakistan lags in identifying spectrum as a lifeline for the government’s Digital Pakistan initiative, but acknowledged an upcoming auction is a step in the right direction.

Telenor does not expect a lot in terms of spectrum availability, but “at least it will ease some of the challenges” facing operators, Khan said.

Khan noted the government recognised Pakistan is one of the most heavily-taxed nations for telecoms services, adding, Telenor was assured it would be handed some incentives in the finance bill.

Copyright Business Recorder, 2021


Comments are closed.

FY22 Budget: Relief package for telecom sector likely

PM terms IK’s remarks ‘undemocratic’

Sindh will rise again against ‘the tyrant’: IK

FBR set to fix minimum value for sugar supply

JPL seeks exemption from IFRS-9

Govt urges Turkiye to expedite TGA

Pakistani embassy in Kabul: IS-KP claims responsibility for attack

‘We must act resolutely to defeat the menace’: FO

Wheat quota of three flour mills suspended

Six coal miners killed in gas explosion in Harnai

Police granted 5-day remand of Swati