Islamabad: The finance bill has proposed that 10 paisa on each SMS, Rs1 per call if the duration exceeds three minutes, Rs5 per GB for internet usage and has been imposed, which will be in addition to the existing rates.

When the news reached to the public that taxes and duties have been enhanced on the consumers, users stormed social media with criticism of the government tagged the prime minister with their tweet that the “Budget killed digital Pakistan initiative of the PM.”

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After the strong criticism of the government, Minister for Energy Hammad Azhar denied that additional duties have been imposed on telecom and the data usage. Minister Hammad Azhar said the tax on internet usage was just a proposal that was rejected by the cabinet and PM Imran Khan and will be removed from the Finance Bill before parliament’s approval.

Some withholding taxes are being reduced from 12.5 percent to 10 percent for tax year 2022, and further down to 8 percent for the future. This will be applicable on telephone users, mobile telephone, prepaid internet and telephone cards.

According to the salient features of the budget FY 2021-22, Customs Act, 1969 relief measures proposed the inclusion of telecommunication services in definition of the industrial undertaking.

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Furthermore, the rate of federal excise duty (FED) on telecommunication is proposed to be reduced from 17 percent to 16 percent.

The reduced rate of withholding tax of 3 percent on oilfield services, warehousing services, logistic services, collateral management services and telecommunication services is also proposed.

Tax exemptions and concessions for Roshan Digital Accounts (RDAs) and implementation of electric vehicles and mobile phone policy implemented vide Tax Laws (Amendment) Ordinance, 2021 dated 11.02.2021 have also been made part of the bill. Stay connected with Technical Meer and help us to know more about fun tech stuff.

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