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Home Islamabad

Rs 652.18b contributed in term of telecom taxes in 4 years

byCT Report
26/10/2016
in Islamabad, Latest News
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ISLAMABAD: Telecom sector has contributed an amount of Rs 652.18 billion to national exchequer in terms of regulatory duties and taxes during last four years.

A higher contribution of Rs 243.3 billion was made during 2013-14 due to Pakistan Telecommunication Authority’s (PTA) extraordinary deposits of Rs 104.6 billion of total value of 3G and 4G spectrum auctions in April 2014.

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In 2014-15, the telecom sector also contributed Rs 130.7 billion to national kitty in terms of activation taxes and GST.

An annual report of the PTA has said the sector contributed an amount of Rs. 124.73 billion to national exchequer in terms of regulatory duties and taxes during 2012-13, Rs 243.3 billion in 2013-14, Rs 126.3 billion in 2014-15 and Rs 157.85 billion were contributed during 2015-16.

The report said GST collection by telecom operators stood at Rs 41.65 billion during 2015-16, down from Rs 45.8 billion an year ago. This GST collection from telecom operators once touched Rs 60.1 billion in 2013-14.

The PTA’s deposits during the report period stood at Rs 34 billion, up from Rs 7 billion a year ago. Similarly, total funds collected from telecom sector stood at Rs 157.85 billion, up from Rs 126.3 billion a year ago.

Major contributor for increase in telecom’s contribution towards national exchequer included the proceeds from spectrum fee that PTA received It merits mentioned here that the sector is a significant source of revenue generation for government in terms of initial and annual licence fees, initial and annual spectrum fees, Universal Service Fund (USF) and Research and Development (R&D) Fund contributions, Access Promotion Contribution (APC) for USF Numbering Charges licence, application fee, etc, and taxes, including General Sales Tax (GST), Federal Excise Duty (FED), SIM activation tax, advance withholding tax (WHT), sales tax on mobile handsets, Customs duties and other taxes.

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