Government of Pakistan imposed additional 5% tax on Telecom Sector

In a latest move Government of Pakistan has increased the taxes on the highly taxed Telecom sector. Finance Minister Ishaq Dar told that from 1st July 2013, withholding tax will be increased to 15% from the previous 10% and the proposal has been included in the finance bill after consultation with all stakeholders. He added that the increase in the tax is adjustable in the final tax liability of the customers.taxTelecom sector is currently the most taxed sector in Pakistan, a list of different taxes imposed on Telecom services is as follows:

  • Withholding Tax: 15%
  • Federal Excise Duty: 19.5%
  • Service Charges: 7%

Now if you recharge your mobile account with 100 rupees, initially you will get 78 rupees in your account, and additional 19.5% FED will be deducted when you use the service for making calls, SMS and other Value added services.

What do you think about the increament in the tax? how this decision will affect the telecom sector of Pakistan? Leave your opinions in the comments section below.

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