AGL 6.80 No Change ▼ 0.00 (0%)
ANL 9.40 Increased By ▲ 0.18 (1.95%)
AVN 78.12 Increased By ▲ 3.92 (5.28%)
BOP 5.40 Decreased By ▼ -0.03 (-0.55%)
CNERGY 4.85 Decreased By ▼ -0.04 (-0.82%)
EFERT 78.00 No Change ▼ 0.00 (0%)
EPCL 55.80 Increased By ▲ 1.10 (2.01%)
FCCL 15.19 Increased By ▲ 0.26 (1.74%)
FFL 6.32 Decreased By ▼ -0.02 (-0.32%)
FLYNG 7.10 Decreased By ▼ -0.02 (-0.28%)
GGGL 10.35 Decreased By ▼ -0.21 (-1.99%)
GGL 16.31 Decreased By ▼ -0.12 (-0.73%)
GTECH 8.18 Decreased By ▼ -0.03 (-0.37%)
HUMNL 6.39 Increased By ▲ 0.04 (0.63%)
KEL 2.92 Decreased By ▼ -0.03 (-1.02%)
LOTCHEM 28.95 Increased By ▲ 0.35 (1.22%)
MLCF 27.45 Decreased By ▼ -0.35 (-1.26%)
OGDC 75.20 Decreased By ▼ -0.10 (-0.13%)
PAEL 15.95 Increased By ▲ 0.15 (0.95%)
PIBTL 5.55 Decreased By ▼ -0.05 (-0.89%)
PRL 16.91 Decreased By ▼ -0.31 (-1.8%)
SILK 1.07 Increased By ▲ 0.01 (0.94%)
TELE 10.70 Increased By ▲ 0.40 (3.88%)
TPL 7.97 Decreased By ▼ -0.03 (-0.38%)
TPLP 20.83 Increased By ▲ 0.03 (0.14%)
TREET 23.00 Increased By ▲ 0.40 (1.77%)
TRG 128.70 Decreased By ▼ -0.15 (-0.12%)
UNITY 23.35 Increased By ▲ 0.85 (3.78%)
WAVES 11.54 Decreased By ▼ -0.46 (-3.83%)
WTL 1.11 Decreased By ▼ -0.02 (-1.77%)
BR100 4,113 Increased By 13.3 (0.32%)
BR30 15,595 Increased By 61.9 (0.4%)
KSE100 41,212 Increased By 83 (0.2%)
KSE30 15,410 Increased By 73.2 (0.48%)
Follow us

ISLAMABAD: The government has proposed the industrial status for telecom sector, reduced withholding tax rates from 12.5 percent to 10 percent for tax year 2022, and eight percent for onward for telephone user on account of mobile telephone and prepaid internet or telephone cards, reduced rate of federal excise duty on telecommunication from 17 percent to 16 percent, and three percent reduced rate of withholding tax on telecommunication services in the Finance Bill 2021-22.

According to the salient features of budget 2021-22, Customs Act 1969 relief measures proposed the inclusion of telecommunication services in definition of industrial undertaking.

According to the notes on Clauses Customs Act, 1969 (Iv of 1969) seeks to include "Telecommunication Companies operating under the license of PTA" in definition of industrial undertaking.

It further seeks to reduce withholding tax rates from 12.5 percent to 10 percent for tax year 2022 and eight percent for onward for telephone user on account of mobile telephone and prepaid internet or telephone cards.

The bill proposed to provide exemption from the withholding tax provisions to payments received by the National Telecommunication Corporation for rendering services.

Further, the rate of federal excise duty on telecommunication is proposed to be reduced from 17 percent to 16 percent.

Further the reduced rate of withholding tax of three percent on oilfield services, warehousing services, logistic services, collateral management services and telecommunication services is proposed.

However, in order to reap reasonable revenue from this sector, federal excise on mobile phone calls exceeding three minutes @ Re1 per call, SMS message @ Re0.1 per SMS, and internet data usage @ Rs5 per GB is being proposed.

This will result into mild taxation of a broad spectrum of population.

Tax exemptions and concessions for Roshan digital accounts and implementation of electric vehicles and mobile phone policy implemented vide Tax Laws (Amendment) Ordinance, 2021 dated 11.02.2021 made part of bill.

Copyright Business Recorder, 2021

Comments

Comments are closed.