Internet services - charges and taxes

06 Jul, 2020

LETTER: The Covid-19 pandemic has changed the dynamics of the world and continuously evolving patterns of new ways of life and working styles. One of them is increasing dependence on the internet connectivity for work, education, entertainment, social interactions in these unprecedented challenging times. The internet is no longer a luxury but an inherent necessity after basic needs in life.

The emphasis is now on online education and home schooling at least for the remainder of year 2020. Parent, students, children, educational institutions are adopting to the norms of new methodologies.

Keeping in view the enormous rising demand of internet services, especially for education, PTA and the Government must consider enhancing speed, bandwidths and reducing the monthly subscription costs. Most importantly to abolish high tax rates on internet services to make this equally affordable to all the strata of the society. Currently the sales tax is 19.5% and withholding tax is 12.5% on compound, which makes total tax more than 32%. How can students and startups afford to pay high internet charges and colossal amount of taxes to continue their endeavors with online ventures? This is an impediment from the authorities deterring the new modus operandi of the online activities and education.

Similarly, the businesses are also moving towards digitalization and e-commerce. They may require VOIPs from reputable service companies globally to enhance their activity. Work from home also requires access of VOIPs. PTA has blocked VOIPs of credible companies and it is requested to consider unblocking them for enhancement of businesses and communication for social interactions of people with friends and families overseas during this turbulent time. One example is SIP: Port 5060 - 5061 UDP RTP (Voice) Traffic: Ports 10000-20000 UDP.

I quote the noble gesture of Eric S. Yuan, the founder of Zoom Application, this company Zoom is offering free access to educational institutions to complement their new initiatives and efforts in this new era. No wonder his earning just in three months of pandemic is USD 4 billion, whereas we as a nation try to exploit the crucial situations as opportunities.

I hope PTA will consider this proposal in the larger national interest of masses in making them progressive to compete globally.

KARACHI ATHER IQBAL (SAI)

Copyright Business Recorder, 2020

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