KARACHI: Pakistan Telecommunication Authority (PTA) has opposed the imposition of tax on data transfer and broadband services by the Punjab government.
PTA Chairman Dr Ismail Shah, while addressing the 8th Pakistan TeleCON-2015 conference, backed the private sector’s calls for withdrawal of the duty, saying, “The recent imposition of taxes on data services is not good for the growth of telecom sector, which could impede the penetration of mobile broadband, particularly in Punjab.”
The Punjab government, through a statutory regulatory order (SRO) on May 29, imposed a 19.5% tax on internet services that provide more than 2 megabits per second (Mbps) connection or exceeds Rs1,500 in monthly consumption.
Dr Ismail Shah, about the taxation structure of the Information and Communications Technology (ICT) sector, said that the PTA has approached the province to explain that taxes on data services will not bode well for the entire telecom sector and consumers of the province.
The chairman told the audience that they were collaborating with the Ministry of IT and Telecom to convince the Punjab government to consider indirect revenues through internet uptake and promising economic activities that are inevitable with tax-free data service – and tax the internet itself.
