ISLAMABAD: Higher taxes have caused 1.8 per cent decline in the revenue of telecom sector during the last year.
Pakistan Economy Watch (PEW) has expressed concern over this decline, saying once vibrant telecom industry of Pakistan is dying a slow death due to excessive burden of taxes. It said the direct foreign investment has also witnessed decline as DFI plummeted by 72 percent to $121 million for the fiscal year ending June 30th. The telecoms industry contributed 50 percent less in taxes compared to the previous year which were Rs126 billion, down from Rs243 billion, said PEW President Dr Murtaza Mughal.
He said that biometric subscriber verification that resulted in overall connection numbers dropping by 18 percent. At the end of the fiscal year, a total of 114.7 million subscribers remained down from 140 million in FY14.
Dr Murtaza said that Sales tax on numerous types of imported mobile devices has been doubled this year by the government which will is having a negative impact. He said that cell phones and mobile Internet is important tool to reduce poverty therefore policymakers should consider providing relief to telecom industry reeling under heavy taxation.
