14% Advance Tax Imposed on Internet Across Pakistan

Another day and we have a news about another tax. Reports suggest that Government of Pakistan has imposed 14% tax on internet across Pakistan. With this new advance tax — which can be reclaimed at the time of filing of returnsĀ — 14% of the bill amount is supposed to get deducted on internetĀ usage across Pakistan.

This is a federal tax, and is imposed for Internet users inĀ all provinces.

For those who are wondering that Punjab just withdrew taxes on internet then why this new tax, thenĀ the tax that Punjab Government had impose and later reverted wasĀ GST.

GST or General Sales Tax is different from WHT, as GST is collected by provinces (and it is never returned) while WHT is collected by federal government and it can be re-claimed at the timing of filing returns.

Anyone with Rs. 1,000 monthly bill will have to pay Rs. 140 extraĀ as WHT

For commoners, you just have to pay 14% extra on your internet services.Ā Anyone with Rs. 1,000 monthly bill will have to pay Rs. 140 extra now, as advance tax.

For internet users in KPK and Sindh, you will have to pay 14% WHT and another 19.5% as GST. So a total of 33.5% tax for using internet.

ISPs are already in process of informing their customers about this new tax.

Those customers who file their returns can claim 14% WHTĀ back, while non-fillers can forget about this money for ever.

Mobile companies are still not sure if they will deduct this tax for mobile dataĀ usage or not. They said that bill requires interpretation and will be clarified at a later time.

A tax expert told ProPakistani that mobile phone companies already deduct 14% advance tax or WHT from card loads, which is then used for telecom services and mobile dataĀ as well. If internet is taxed at same rate then there will no change in how taxes are deducted forĀ mobile phone users. Which means that 14% advance tax on internet is applicable for mobile phone users as well.

Tech and telecom reporter for over 15 years


        • file your tax return and it will be adjusted there. If no tax it will be returned back to you.

          • I don’t understand how to do that where to file the tax return & even what it is :(

          • This is the concept of WHT “In Theory”. It hardly materializes when it comes to real world.

            • In real world WTH is placed when people don’t pay taxes and they didn’t get any return. sometimes people pay less tax and this WTH remained there.

              • I did not get back the excessive tax i have paid. It was not much so I did not bother. Do they really pay back? I do not think so, if they do why they did not paid me back. is there any process to get back?

                • You submit your receipts or bills where you pay WTH and it will automatically deducted when you file income tax return

    • Millions of internet user’s income is below tax level and imposing With holding Tax on them is “Jaga Tax”.

      This “Jaga Tax” will never be refunded to these innocent users ever

      • exactly. Mostly internet users are young people. And they don’e have either taxable income or their salaries are paid after deducting taxes, So they don’t file for taxes. That why there are no means you’ll get WHT back easily

        • its over headache. But if the income is below tax level you still have to file income tax return with 0 tax. And that income tax return can be used to get back your WHT from the likes of mobile operators, internet providers. And they do return your WH tax. Many people regularly claim their WHT and get back their money from mobile operators.

        • If your salary is already deducted then you have already paid the income tax.
          It is stupid for a salaried person to not ask their company to file the income tax paper for them. Some companies do that for their employees.
          If they do not, then a salaried person can download the form.
          Fill it out, and send it by post to the tax office.
          Then you shall get a cool letter from the government thanking you for paying your taxes.
          Also mention the 14% you paid on the phone and internet bills to get them back or adjusted.
          Regards,
          Khawar Nehal

      • Dear if you are unaware of the Law then it is your fault not the Govt. in law it is stated “Caveat emptor” means buyer be aware.

  • Looking for a reliable accountant / tax expert to file my return as a freelancer, close to clifton in Karachi. Anyone has a recommendation?

    @Aamir I think you did an article on how to file a tax return. Can you please interview a tax expert and list everything step by step for us?

    • Go to kacheri or find any other service to do this job for you.
      visit FBR to register yourself.You’ll get a card after registration and then you can use those e services.

      • I do have an NTN, and I file sales tax returns for my old business. What I need to know is how to file IT on my own as a freelancer.

        • Then you need to visit consultant in karachi.search internet and let them know your income.some professionals they file return for you and some only guide you.

          • Salam to all.
            I just like to know which amout charge tax i mean im running cable network in joher i took a fiber link from any company like connect/city/dream/etc . they give me 1mb card for 300 rs . 2mb 450 etc . and i gave to my client in different rate like 500/600/700.
            Please clear me how they conform i take how much money from my clients i think they charge me company card price its fix and they have to tax filer . wht. Logic for that plz.explain with ref.
            Thankfull to you all

  • Tax aese he dain gy log.
    wth tax is not a good way to enter more people in tax net but it’s the perfect way in Pakistan.
    We people pay thousands in different taxes yearly and intresting thing is some people pay more than their actual tax but they don’t want it to pay as they think it’s not their duty or a common bahana “ye sayasatdan kha jaen gy” or some people know nothing about tax and how to file it.

    • Tax should be collected from those people whose income is in taxable range

      Imposing WHT tax on those whose income is not in taxable range is very Brutal and Senseless decision

      • even if your income is not taxable still your duty and obligation as a citizen is to return file and pay zero tax.

        • You are wrong. Only those whose income is in taxable range need to file return and can adjust the WHT in the annual return.

          Where you have read that every one in this country need to file Tax return?
          (even those whose income is below taxable range)

          • MasAllah plz use your brain.
            Meri jaan sab return file kerty hain albatta tax sab nahi dete. They show that we earn less and won’t pay any tax.
            Same for businesses, if they are in loss they get rebate.
            FYI not filing return is unlawful in this country.

            • I said that a person who don’t fall in taxable income range need not to file return.

              So low income group need not file return. And WHT should not be charged to them.

              Dr Sahib have you got degree from Axact?

              Regards

                • Sir please give a single reference from where this information stems that every Pakistani whether rich or poor, employeed or unemployed. Having Zero income should file retun?

                  Kindly avoid giving baseless information

                  • Section 114 of income tax ordinance. Return of income. ā€” (1) Subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely:ā€“ 1[(a) every company;] 2[(ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year; 5[ ] ] 3[or]] 4[(ac) any non-profit organization as defined in clause (36) of section 2; 6[(ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;] 7[(b) any person not covered by clause who,ā€”

                    i) 148 has been charged to tax in respect of any of the two preceding tax years; (ii) (iii) claims a loss carried forward under this Ordinance for a tax year; owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory 1[;] ] 2[(iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;] 3[(v) owns a flat having covered area of two thousand square feet or more located in a rating area;] 4[(vi) owns a motor vehicle having engine capacity above 1000 CC; 5[ ] ] 6[(vii) has obtained National Tax Number 7[; or] ] 8[(viii) is the holder of commercial or industrial connection of connection of electricity where the amount of annual bill exceeds rupees one million.] 9[(1A) Every individual whose income under the head ā€—Income from businessā€˜ exceeds rupees three hundred thousand but does not exceed rupees three hundred and fifty thousand in a tax year is also required to furnish return of income from the tax year.]

                    A return of income – 149 (a) (b) (c) 4[(d) 5[(e) shall be in the prescribed form and shall be accompanied by such annexures, statements or documents as may be prescribed; shall fully state all the relevant particulars or information as specified in the form of return, including a declaration of the records kept by the taxpayer; 2[ ] shall be signed by the person, being an individual, or the personā€˜s representative where section 172 applies 3[;] ] shall be accompanied with evidence of payment of due tax as per return of income; and] shall be accompanied with a wealth statement as required under section 116.] 6[(2A) A return of income filed electronically on the web or any magnetic media or any other computer readable media as may be specified by the Board shall also be deemed to be a return for the purpose of sub-section (1); and the Board may, by notification in the official Gazette, make rules for determining eligibility of the data of such returns and e-intermediaries who will digitise the data of such returns and transmit the same electronically to the Income Tax Department under their digital signatures 7[and other matters relating to electronic filing of returns, statements or documents, etc.] ] (3) The Commissioner may, by notice in writing, require a person, or a personā€˜s representative, as the case may be, to furnish a return of income by the date specified in the notice for a period of less than twelve months, where –

                    person has died; the person has become bankrupt or gone into liquidation; the person is about to leave Pakistan permanently; the Commissioner otherwise considers it appropriate to require such a return to be furnished. Subject to sub-section (5), the Commissioner may, by notice in writing, require any person who, in the Commissionerā€˜s opinion, is required to file a return of income under this section for a tax year 2[or assessment year] but who has failed to do so to furnish a return of income for that year within thirty days from the date of service of such notice or such longer period as may be specified in such notice or as the Commissioner may allow. (5) more] A notice under sub-section (4) may be issued 4[of the] last five completed tax years 3[in respect of one or 5[or assessment years]. 6[(6) Subject to sub-section (6A), any person who, having furnished a return, discovers any omission or wrong statement therein, may file revised return subject to the following conditions, namely: ā€”

                    (a) it 151 is accompanied by the revised accounts or revised audited accounts, as the case may be; and (b) the reasons for revision of return, in writing, duly signed, by the taxpayers are filed with the return.] 1[(6A) If a taxpayer 2[files] a revised return voluntarily along with deposit of the amount of tax short paid or amount of tax sought to be evaded along with the default surcharge, whenever it comes to his notice, before receipt of notice under sections 177 or sub-section (9) of 122, no penalty shall be recovered from him: Provided that in case the taxpayer 3[deposits] the amount of tax as pointed out by the Commissioner during the audit or before the issuance of notice under sub-section (9) of section 122, he shall deposit the amount of tax sought to be evaded, the default surcharge and twenty-five per cent of the penalties leviable under the Ordinance along with the revised return: Provided further that in case the taxpayer 4[revises] the return after the issuance of a show cause notice under sub-section (9) of section 122, he shall deposit the amount of tax sought to be evaded, default surcharge and fifty per cent of the leviable penalties under the Ordinance along with the revised return and thereafter, the show cause notice shall stand abated.] (7) Every return purporting to be made or signed by, or on behalf of a person shall be treated as having been duly made by the person or with the personā€˜s authority until the person proves the contrary.

                  • Section 115. Persons not required to furnish a return of income. ā€” 5[(1) Where the entire income of a taxpayer in a tax year consists of income chargeable under the head ā€•Salaryā€–, Annual Statement of Deduction of Income Tax from Salary, filed by the employer of such taxpayer, in prescribed form, the same shall, for the purposes of this Ordinance, be treated as a return of income furnished by the taxpayer under section 114: 1[Provided that where salary income, for the tax year is five hundred thousand rupees or more, the taxpayer shall file return of income electronically in the prescribed form and it shall be accompanied by the proof of deduction or payment of tax and wealth statement as required under section 116.] ] 2[ ] (3) The following persons shall not be required to furnish a return of income for a tax year solely by reason of section (1) of section 114 ā€“ (a) (b) A widow; 3[sub-clause (iii)] of clause (b) of suban orphan below the age of twenty-five years; (c) (d) (4) a disabled person; or in the case of ownership of immovable property, a nonresident person. Any person who is not obliged to furnish a return for a tax year because all the personā€˜s income is subject to final taxation under sections 5[5, 6, 7, 6[15,] 7[113A,] 8[113B,] 148 9 [ ] of section 151, section 152, 4 [ ] 10[clauses (a), (c) and (d) of sub-section (3) of section 153], 154, 156 (3) of section 233, [ ] ] or sub-section (5) of section 234 3[or sub-section (3) of section 234A] ] shall furnish to the Commissioner a statement showing such particulars relating to the personā€˜s income for the tax year in such form and verified in such manner as may be prescribed. 4[(4A) Any person who, having furnished a statement, discovers any omission or wrong statement therein, he may, without prejudice to any other liability which he may incur under this Ordinance, furnish a revised statement for that tax year, at any time within five years from the end of the financial year in which the original statement was furnished.] 5[ ] 6[(5) Subject to sub-section (6), the Commissioner may, by notice in writing, require any person who, in his opinion, is required to file a prescribed statement under this section for a tax year but who has failed to do so, to furnish a prescribed statement for that year within thirty days from the date of service of such notice or such longer period as may be specified in such notice or as he may, by order in writing, allow.] 7[(6) A notice under sub-section (5) may be issued in respect of one or more of the last five completed tax years.]

                  • If you paid wht then you did not pay zero tax.
                    If your income is so low, at least get your WHT adjusted or returned.
                    With WHT there is no one who is paying ZERO tax.
                    Simple

            • I never claimed that I am tax expert

              But I do know that tax return is not mandatory for common man whose income is below tax range. The point discussed here is that Why Govt is collecting WHT (advance income tax) from General Public/Students etc who are not liable to pay any tax or submit tax return

              Don’t try to confuse the situation

              • Income tax is on income. Sales tax is on sales.
                WHT is done on some items or services.
                There are also excise and other taxes like vehicle, or property.
                You are taking about not liable for income tax.
                It does not mean that if they import something they shall not be liable for customs duties.

        • yeah my duty is to pay tax while my country officials do not provide me opportunities to earn enough money.

          f you know anything about tax, it is for the betterment of common man.. not jagga tax.

          • First pay the tax then question the government.
            No one pays tax, we hardly get 30% out of this 90% is sales toll etc.
            This thing will continue forever.people demand everything first and government need tax first.

            • Have you ever purchased “Soap” if so please read the price tag and you will see you are paying some tax

              If you ever traveled by air, your fare include tax

              If you ever happned to pay mobile phone bill you are paying tax. how much?

              So how come you conclude that nobody pays any tax in this country

              • Meri jaan soap walay
                That was the tax I said collected here.
                The direct tax collection in Pakistan is less than 1 %. If you ever heard about income tax.

                • Thank you Dr Sahib at least you acknowledged that everybody in Pakistan is paying tax (at least Indirect taxes and that are about 17-40%)

                  Govt already takes away at least 25% from my disposable income by imposing indirect taxes and still says that nobody pays any tax.

                  So stop blaming Pakistanis that they don’t Pay any Tax. Every Pakistani is paying tax. Its a jugglery that call it indirect tax. In the end govt is collecting huge amount by calling it indirect tax.

                  The article is about WHT that is supposed to be collected from those who fall in the range of taxable income

                  The point here is that don’t collect WHT (advance income tax) from those who are exempt

                  Now if direct tax collection is so low its the inefficiency of concerned Govt Departments. Why punish poor people and especially Youth?

                  • I completely agree with you that every one is paying indirect tax.
                    But indirect tax only reach to government when some one files a return.
                    As this tax is collected by manufacturer and/or Service provider, but how Govt will know that you paid the tax until you file a Tax Return.
                    If you ever file a tax return, you would know that this is just a statement that says how much indirect tax I have already paid in terms of Sales Tax, WHT, Advance Tax etc.
                    Like in your example, if you buy a Soap for 100 PKR, it includes 18%GST, and all this money goes to retailer, and the forward to whole seller, and whole seller pay to manufacture. End consumer is the only person who is paying tax, retailer/whole seller and manufacture are just forwarder, but there is no way for Govt to know that how many soaps you used in whole year, until you file a Tax return, and if you don’t then this money which you paid as a tax will only goes to manufactuere’s pocket.

                • Yup you are right. Once people get enrolled for Direct taxation, i.e. start filing returns, logically, indirect taxation (GST, SST, PST etc usually 17% will gradually be reduced by any govt whether it is ganja, balla or teer). People need to understand. When they don’t give taxes, country will opt for indirect measures which hit poor very hard. Secondly, your country has to restore raising debts. Not good if u want to develop your country collectively. Read history of Germans and Japanese after WWII.

      • Axactly! Uncle Sharif, Zardari, Imran aur Bhai Bilawal don’t pay tax then how we can imagine our whole nation will pay tax. If the people who are senior in the government don’t pay tax, the junior will do the same. It’s the main problem of being not paid tax.. In Pakistan, that’s why, only 0.57% people pay income taxā€“0.7million out of 190 millionā€“BBC. Another example, ARY collected 10 million rupees just in an hour. The reason was that people trusted that our money is going into the right hands otherwise that was not possible. If you want to make the people taxpayer then make the senior of the government taxpayer. And I said we have no objection in paying tax because we believe our money is not being utilized as a proper way.

        • Every one in this country is paying at least 17% tax
          and its wrong propoganda that nobody pay tax

          When you pay for petrol, electricity, house hold items etc you are paying sales tax (consumption tax), custom, excise, WHT etc. Actually we all are already paying sufficient tax

          So from a beggar to a king all are paying tax in this country according to there consumption level.

          This is mere FBR’s and IMF agents Damara who always says that no body pays tax.

          After imposition Sales tax, Custom Duty, Excise duty etc all other taxes should be abolished or brought to lower level

          • There is a great difference between income tax and normal tax, Brother!! You may be right 17% people pay tax, but not income WALA. If the people were paid only 8% income tax, we would see miracles. In this way, the government would not need to implement such tax as given aboveŪ” People don’t pay income tax, that’s why, our government has crossed all the limits in implementing tax in order to gain the loss which is being done by income tax.

            • I said we all pay at least 17% Sales tax.

              Repeat please read “WE ALL”

              • Oh, Great! We pay sales tax, Great!! Is Nawaz Sharif exception of ’em? Is he not under the list in which he should pay incometax? Just Rs.5000!! Similarly, Prime Minister Raja Pervez Ashraf, Foreign Minister Hina Rabbani Khar, and Religious Affairs Minister Syed Khushid Ahmad Shah paid only $1,466, $716 and $466 respectively in their lifetime, Jahangir’s World Times Jan 2015, Page No.79.

                • So the real issue is with the “Untouchables”, FBR go get them

                  I am proud “Poor Pakistani” amongst millions of Pakistanis who are already contributing to national progress by paying 17% to 40% tax on daily purchases

                  Stop saying that “Nobody in Pakistan pays any tax” .
                  This drama of blaming all Pakistanis should end now.

                  FBR Catch the big fishes if you can!

                  • bhai aap ko baat samajh nahi aa rhai or Muhammad Aamir ko samjhani nahi a rahi… Aamir INCOME TAX ki baat kar raha he jo k har salaried person ki salary se cut jata he accoridng to his/her income. Approximately it is around 3800 rupees if your salary is 1 Laakh (100,000 PKR). masla ye hai k sirf salaried people ki income se INCOME TAX deduct hota he and there are many professionals or businessmen jin ki income ka kuch ata pata hi nahi hota… for example all the shopkeepers, cloth traders, lawyers, private doctors and many such professions who DO NOT pay INCOME TAX because there is no such law to calculate their income and they are overlooked NO MATTER if they are earning many thousands or laakhs per month.. samajh aayi baat k nahi ?

      • fill the form and collect the WHT back. How hard is that for those poor people.

  • So, basically, if i want my 14% back… i just have to be a filed tax payer… right??

    • I don’t think so it’s possible! This implementation seems as same as sales tax which is impossible to take back.

      • Sales tax is not refundable and can’t be adjusted in income tax return

    • Basically if you are not liable for income tax ie your income is below income tax range WHT should not be imposed on you

      And forget about getting refund from FBR even if you are a tax return filer

      • I see.. so the GOP has made its final move to sabotage what’s been done in the past year. I knew it! All they wamt is money,money,money. They dont care about the average middle class person living in a worse than poor state!

  • Just exempt those who are fillers and tax the rest.
    This is just another way of earning more revenue cz they r just following imf directives.

  • switching to 1 mb from 4 mb

    Special notice

    any PMLN and PPP worker or leader dnt ask me ever for vote.

  • For those who were claiming that PML-N Government is doing fine as they lower many prices last year. That was because they were feared from dharna of Imran Khan. They lower down prices of many things especially the prices of petroleum products.
    Now the situation is different. After getting collaboration from Zardari the stance has been changed. FY 2015-16 has been regarding as the year of taxes. They double the tax on sale of mobile phones, imposed taxes on bank holders and bank transactions. Imposed taxes on aero planes’s tickets. And in the end imposed 14% WHT on internet usage. but that is not the end for your information. Government is planning to tax the freelancing industry too.
    Why so many taxes been imposed. The government is wasting huge money in useless projects like metro bus system which in return is adding no revenue to the government. They are also wasting money on laptop schemes. They also failed to fulfill the promises of supply of electricity for which they get vote bank.
    Overall government is also failed to collect taxes from the huge revenue makers who always found to be evaded from taxes.
    The conclusion is that taxes is burden on the pocket of common persons.

  • 14% WHT on slow speed internet as compared to other countries and 0.6 on all types of Bank transactions I think its time to leave Pakistan !!

  • Is govt. Ka b fittey mun, jo industry grow karti hai usko khana sharu kardete hain.

  • Ų¬Ł†Ų§ŲØ Ś©Ł†Ų¬ŁˆŚŗ Ś©Łˆ Ś†Ų§ŪŁ†Ū’ Ų§ŁˆŲ± ŁˆŁˆŁ¹ ŲÆŪŒŚŗŪ’ ŁˆŲ§Ł„ŁˆŚŗ Ų¢Ł¾ Ś©ŪŒ Ų®ŲÆŁ…ŲØ Ł…ŪŒŚŗ ŲµŲ±Ł Ų§ŪŒŚ© Ų¬Ł…Ł„Ū!
    Ų“ŪŒŲ± ŲØŁ†Łˆ Ų“ŪŒŲ±Ū”Ų“ŪŒŲ±Ų¢ŪŒŲ§ Ų¬Ū’

  • They should implement it like the banking sector those who have ntn no wht simple.
    This pure bull ****

  • Thats Why Young People Are Not Interested In Setting Their Life Here Why Should We Pay Taxes

  • Zong has already been deducting this tax on internet on postpaid connections. When I asked months back, they said internet is free of GST and not of WTH.

  • Matlb Ab Waqt a gya hai k Internet ko bhi Good Bye kar dia jaye……. Chalo chalain kisi aur dunia main jahan TAX na hoon. So SAD :(

  • yeh tax lgta hy axact ki kargardagi dekh k lagaya gya hy… I think they don’t know before that how much these IT industry people earn.

    or maybe that poster behind Rickshaw “ghar bethay lakhoo dollor kamaye” let them think about this ratio of TAX.

  • these a**h*les don’t think anything through, even if the purpose of this tax is to suck money outta non filers, they could have made the process much simpler for filers, without anyone having to claim refunds, if they would have placed a system in collaboration with internet providers that Any person who provides his/her NTN no. should be exempted from advance taxes. What are they gonna make of advance tax? don’t these idiots know anything about economics term “dead weight loss”, the money that is taxed isn’t used in any business activity so everyone in the economic system faces loss e.g. where they could have gained more taxes on the money they have received as advance tax(which they have to return too at the end of financial year).

  • Hharam shareef government pehle 20% pay ker rahe he ab MC ko 14% or pay kere. Marr jao kisi begharat ki nasalo.

  • Taxing the internet? For sharifs the real progress is dispensing the sarya made in their mills. Equation is simple, squeeze the juice out of common man and use that money to buy sarya and make the ‘c’ people happy.

  • I live in Azad kashmir and have no income at all how can i can i file tax return ? i never registered for NTN and Azad kashmir have its own Board of Revenue ?

  • how to make payment of 14% advance tax on fbr portal there is no any section of 14% advance tax

  • Asalam o aliykum . Mein fruit ki rehri lagata hoon or total income 15000 monthly hy mein internet bhe uyse kerta hoon for Study purpose jis per 14% WHT hy kiya mein Sirf internet use kerny k liye tax net mein shamil ho jaon jab k meri amdan be mehdood hy. Regards

  • Asalam O aliykum : mery khayal mein gov ko tax cooperate user per lagana chahye . student or residential user per nai lagana chahye . ager aysa nai ker sakty tu stone age mein wapis chaly jaty hein. dunya sy kioun muqabla kerin .rahein jahilon ki tarhan or taraqi yafta hony ka khuab na dekhein .. Thanks for reading

  • For a average mobile user who uses 500 monthly tariff plan, the amount of advance tax is just 55-65 rupees. On yearly basis, it becomes around 650-700. If you are a salaries person and this is your only source of income, does it makes any sense to claim this 700 advance tax amount in return? Will FBR refund you this amount? I think there is a high % of mobile users, who do not claim this amount. The cost of claiming refund will be higher than the amount of advance tax. So, all goes in the pocket of Govt :-)


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