The telecom companies are desperately waiting for notification for withdrawal of the 19.5 percent provincial sales tax on mobile internet and data services by Punjab Revenue Authority (PRA), it is learnt. Tax experts told Business Recorder here on Monday that one of the telecom operators has already obtained stay order against the levy from the Lahore High Court (LHC).
Punjab government had reportedly committed withdrawal of the mobile internet taxes on floor of House in budget speech on June 12. Reportedly, the notification issued by PRA will be withdrawn that was initially issued on May 28 on mobile internet and data service as GST at 19.5 percent exceeding speed of 2MBs or above Rs 1,500 connection including 3G and 4G service.
The telecom operators are also confused about the chargeability of provincial sales tax by the PRA on mobile internet and data services. There has been no notification issued for the withdrawal of the GST on mobile internet by PRA after lapse of months since Chief Minister Shahbaz Sharif issued a statement to withdraw tax on mobile internet in a meeting with PRA officials on July 29. It is learnt that the officials of PRA seemed to be resisting withdrawal of tax of 19.5 percent on mobile internet data services which was its proposal to generate billion of rupees taxes through telecom industry.