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Home Interviews

Cellular sector faces challenge on tax issues in Pakistan: Chairman Emeritus Vimpelcom Augie K. Fabela

byM Arshad
07/02/2017
in Interviews, Islamabad, Latest News, Slider News
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ISLAMABAD: The Chairman Emeritus Vimpelcom Augie K. Fabela, said that company faced challenges in Pakistan due to tax issues. It is just because of the fact that majority of taxes are indirect and not imposed on cellular companies but the end user and customers.

He further said that rationalization of tax rates along with lowering the dependence on indirect taxes could be helpful in enhancing revenue collection as well as facilitating the customers.

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Speaking during an exclusive interaction with Customs Today, Augie K. Fabela said that tax related issues with the concerned tax authority in Pakistan was complex matter therefore, it required a complete attention from both his company and tax authority sides to hold deliberations for amicable resolution of the issue.

He further said that half of the company’s revenue was being paid to the government in the form of sales, income, withholding and other taxes.  He said that he had discussed a wide range of issues with Prime Minister Nawaz Sharif and Minister of State for Information Technology and Telecommunication Anusha Rehman and both assured full cooperation for the digitalization of Pakistan.

“On the sidelines of World Economic Forum 2017, in Davos, Switzerland, I held detailed meeting with Prime Minister and Minister for Information Technology and discussed a wide range of issues with them” he said while speaking in a media briefing here.

He said that company fielded a Pakistani woman at Davos to present company’s product Jazz before the international community. It is a matter of satisfaction that almost a large portion of international community; from Pakistan, Russia to Africa, repose trust and confidence in the Jazz.

To a question, he said that company had not made any decision regarding participation in upcoming auction of remaining 4G Spectrum; therefore, he declined issuing any concrete comment on this issue.

“However, it is quite clear, he said that he and his company fellows both Pakistan and its people a lot. We are thankful to the biggest portion of Pakistani customers for reposing confidence in the services of company” he added.

He said that company had a comprehensive plan for mass awareness about the use of mobile phone internet and other services. Our agenda is the digital Pakistan, where, every mobile phone user may have access and knowledge about the usage of Mobile Broadband service.

Responding to queries, Chief Executive Officer (CEO) Jazz Aamir Ibrahim said that merger of Warid and Mobilink was win-win deal for both the companies because both gained benefits out of this merger.

To a question about exit of a number of franchises in result of merger of both the companies, he said that closed 80% franchises belonged to Warid and remaining hailed to Mobilink. “But a thorough feasibility study on the basis of financial results and performance of franchises was carried out before coming to any conclusion in this regard” he observed saying that it was improper to observe that franchises were closed down abruptly without taking the possible repercussions into consideration.

In reply to a question about share of corporate social responsibility (CSR) of company, he said that company had been declared as the biggest donor in Pakistan and an award would be received today (Tuesday).

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