VAT will Reduce Tariffs for Telecom Subscribers

Value added tax, if imposed, will reduce telecom tariffs for the consumers. Unlike any other sector, Telecom consumers pay highest level of general sales tax in the country, i.e. 19.5 percent.

If value added tax is imposed (and is replaced with GST), which is 15 percent of actual value of products/services, taxes on telecom sector will shrink from 19.5 percent to 15 percent.

It merits mentioning here that taxes on telecom industry were lowered to 19.5 percent from 21 percent last year.

Though we are not sure about the imposition of VAT in upcoming budget, however, government is firm that VAT will be imposed on all services in the country from July 1st, 2010.

Cellular companies have already expressed urge for lower taxes on the telecom industry. Particularly in recent Telenor Group officials’ meeting with BOI chairman. Earlier, all cellular companies requested the same during their chiefs’ meeting with Sardar Latif Khosa, Minister for IT and Telecom.

It merits mentioning here that telecom sector leads in taxes’ contribution and foreign direct investment for the country.

Tech reporter with over 10 years of experience, founder of ProPakistani.PK

  • This is good news.

    But VAT will increase the prices of other goods, as The spiral effect will be heavy which will ultimately make products more expensive to consumers.

    Subsidies are being withdrawn and VAT tax will be at every level (producer, wholesaler and retailer), instead of the previous tax at only retailer level.

  • VAT is good for the country, or so I think. I see pepole apposing it, that is alrite as I wont like it either to give my tax to the thugs in power/goverment right now… If only we had good leadership, all have been well :)

  • not a gud new today i read in dawn after IMPOSE VAT
    15 % GOVT will impose 5 % federel exise duty means 20 % tax

  • Aoa, Today’s dawn has reported in a story that beside imposition of VAT, government is also considering imposing 5% FED on telecom sectore to fetch adessional rs7 Bilion. So VAT+FED will be equall to 20% more than what we have been paying this fisicle year.

  • And i have been getting so ugly, un-authentic forwarded sms telling that when you load 100 bucks worth card balance will reduce to 69pkr give me a break people how could GST and VAT be functional together. And i feel our VAT rate is lower than UK

    • How is it possible that you load 100 bucks means $100 that is 100*85 = 8500 and you get Rs69 :) isn’t if hilarious. :) hahah lolzz

  • MR EX.. FYI.. VAT means value added tax.. What hell “value”, this govt is adding????
    increasing fuel adjustment charges for electricity.. increasing fuel prices (Whereas everywhere in the world prices are going down)..
    huge loadsheding.. zero security (Recent terrorist attacks in Lahore and Karachi)..
    In UK if they are imposing VAT they are offering facilities to ppl. They are only imposing all kinda taxes and zero value addition is being given to general public… :-(

  • Ooooh God I just want to get rid of this government or from this country who’s people are soo stupid and idiot (including me of course) that they don’t know to fight for their own rights.

    Guyz we need a revolution like France, Iran and Kargistan. There are lots of examples but whey we are becoming def and dumb.

  • I am sorry for saying bad words for my country Pakistan. I love my country but…. I am …. saaad desperate…. im i don’t know what…

    Please God help our Country and people..

    Pakistan Zindabad

    • I am second to you my brother. I am also fed up of this huge loadshedding and other crises in the country.

  • lol.. this way or that way, its the same both ways..

    who said VAT will be ipmosed inplace of GST?? Guys this is still to come whether VAT will be applied, GST will be applied or VAT + GST will be applied and never foget the FED thingy :D
    wait till 15th June, you will all know the answer.. keep smilin :(

  • It appears that presently we have the most hated Head of the country. And ofcourse the most hated governmaent as well most stupid and unworthy opposition. The so called dictators were a thousand times better – especially President Ayub. All these politicians are pygamies who try to beat their chest so that they can appear taller – but are no where near. This set up wants to take are skin off so that they have enough money to enjoy Pakistan and not to serve the people. Tell me why should I be asked for degrees master or PHD for posts which are inferior to MNA/Sentors? If there is no bar to becoming the controllers of the country why should there be for any under this ruling and most spited class. The problem is that any student who is zero in studies becomes a politician. There are are exceptions – though extremely rare. Then we have cronies (looking after the inerior-or himself?) and the other one who tried to show how colose was he to the FM of USA – and gets a wrap on his knucles aftr a few weeks.

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