LAHORE: The Punjab government has decided to withdraw tax on mobile Internet which was imposed in May, 2015.
Sources told Customs Today that after this decision, the Punjab Revenue Authority will face a shortfall of Rs 5 billion for the current fiscal year of 2015-16 as it was assessed in the budget 2015-16 that PRA will receive revenue of Rs 5 billion from this tax.
Other provinces like KPK and Sindh have already imposed tax on Internet services and getting a smart amount of revenue from cellular companies. But in Punjab, after resistance from mobile phone operators and common citizens, the government has decided to withdraw it. Punjab has more than 60 percent cell phone users in Pakistan.
Chief Minister Shahbaz Sharif, has ordered the reversal of 19.5 percent Internet tax on wired and mobile broadband.
It is believed that SRO for imposition of 19.5 percent tax on wired and mobile internet issued on May 28th, 2015 is finally going to get de-notified.
Earlier, Finance Minister of Punjab had announced reversal of internet taxes on June 12th, 2015 during her budget speech. However, official notification for the same was never issued and instead PRA chairman was cited as saying that tax was never withdrawn.
Now, Chief Minister Punjab and Umar Saif, Chairman PITB once again declared reversal of internet and mobile data taxes adding that “cellular companies must pass this on to the consumers”.
It is pertinent to mention here that Ufone and Mobilink have already increased their 3G data tariffs by 19.5% amid the taxes that were imposed by Punjab. Both the operators had increased tariffs country wide. It is hoped that both operators will reverse data rates with this new development.
