The Telecom Operators Association has made an urgent appeal to the Special Investment Facilitation Council (SIFC) to abolish the Rs. 100-200 million fines on the telecom sector under the Federal Board of Revenue’s (FBR) Income Tax General Orders (ITGOs) against non-filers.
In a letter, the association wrote the authorities to withdraw “punitive measures” proposed in the Finance Bill 2024-25. It also requested to review and abolish the 75 percent advance tax on mobile services for non-compliant non-filers.
The association said the proposed fines of Rs. 100 million and Rs. 200 million every fortnight for ITGO implementation by the telecom sector, especially targeting non-tax filers, are deemed discriminatory and unjust. These fines, seen as punitive against telecom operators who play no direct role in tax filing compliance, deter foreign investment.
The association has requested the withdrawal of these fines, a move also supported by the Senate Committee.
In terms of the 75 percent advance tax on mobile services, the association lamented the operational challenges in distinguishing between compliant and non-compliant tax filers among the 180 million subscribers currently active in Pakistan. The letter said the current system lacks the capability to implement this measure effectively and urged a review and abolishment of this amendment.
The association appreciated the cooperation of Finance Minister Muhammad Aurangzeb and Chairman FBR on this matter and assumed their commitment to assisting the FBR in achieving its goals wherever possible.
In view of the above and given the challenges faced at our end and deliberated in detail these measures/proposals in the Fiscal Bill 2024 are unwarranted, therefore we urge for the immediate withdrawal of these proposed amendments from the Finance Bill 2024-25 due to time constraints, the letter concluded.
Sources told ProPakistani that SIFC has summoned representatives of telecom companies to deliberate on this matter.
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What is SIFC’s exact role? Facilitating investments or export of onions, bananas, fodder or poking its nose in every matter? Why are telecoms asking SIFC for this favour? Is anything normal in this country?