Telecom Customers Paid Rs. 39.82 billion Taxes in H1FY12

mobile-phone-userThe telecom sector has become biggest utility services consumed by customers of various income level in different parts of the country as they paid Rs 39.828 billion on the account of taxes on telephony services in the first half of current financial year 2011-12.

According to the FBR statistics, it collected Rs 24.058 billion GST/FED from customers of different telephony services (Cell phone, landline, wireless) in July-December 2011.

Telecom service is having largest subscribers base in the country with more than 120 million subscribers on various operators using different technology. As against, customers of different utilities such as electricity and natural gas, which can be estimated to be very low comparatively.

On the top of all, the rate of FED collected on telephony services in the mode of GST, is the highest among all the sectors, standing at 19.5 percent compared with 16 percent of different sectors and utility services.

Telecom sector is the major spinner after petroleum products contributing to massive revenues under GST. It share constitutes 16.7 percent in overall GST collection as reported by FBR.

Previously, the sector generated Rs 23.429 billion under GST, showing growth of 14.2 percent revenues of tax authorities on the increase of services utility and number of subscribers on different networks.

Remember the FED/GST deducted on every call a subscriber makes; or over sending SMS/MMS; subscription of various call packages, SMS bundle offers, and GPRS. In addition to it applies on balance inquiry and balance loan as well.

FBR however is not happy with this collection as it expressed dismay over its low growth.

The report said that “the collection from telecom, second major source of sales tax domestic, has registered a low growth of 2.7%. One reason of low growth is around 2% increase in the input adjustment.”

The tax is slapped and deducted from the customers. Now it is tax evasion of telecom operators or inefficiencies of tax authorities to receive it properly, the customers ultimately pay its heavy contribution of using services.

Besides, FBR collected Rs 15.77 billion under Withholding Tax (WHT) in first half of the current financial year 2011-12 as against Rs 13.264 billion taxes collected under same head in the corresponding period of pervious financial year.

The WHT collection from telecom sector showed a growth of 19 percent from previous year whereas the sector share was remained 8 percent and it is fourth largest contributor of overall WHT generation.

The WHT at the rate of 10 percent is deducted at the moment you recharge your balance if you are a prepaid customer. Whereas, the postpaid customers of different services have to pay 10 percent of the amount bill excluding GST/FED and operators’ charges.

Overall, last year Rs 36.693 billion collection in the first half of 2010-11, hence Rs 3.135 (8.5) percent more tax collected in the present financial year.


  • MAHAR

    Aah what about customers hamein is ke badle main mili services fees ke naam pe loot mar taxs

  • Same old low quality services. aur companies to hum say aisay paisay lay rahi hain jesay free calls free SMS free internet services day rahi hon.

    Telenor Ufone call centers call connect hotay he disconnect ho jatay hain: customer charges+tax pay kerta hay

    Telenor kay call center say 3 seconds chur chur ke awazain ati hain phir call connect hoti hay: customer phir bhi call center+service maintenance charges day raha hay

    Ufone, Zong, Warid service centers walon ko kabhi baat ke samaj he nahi ati: customer phir bhi taxes pay karta hay.

    Zong: zong ke sara din call nahi milti, samnay zong tower laga ho ghar signals nahi atay: customer phir bhi service maintenance charges pay kar raha hay.

    Franchisee walon say to kai shops walay behtar hotay hain, abhi franchisee per ja kar call barring service ka naam lo jawab ayay ga “kia? call divert ke service hoti hay call barring ke koi service nahi”

    Telenor, Warid voice mail service nahi day rahay: customer phir bhi extra service maintenance charges+extra taxes pay kar raha hay. voice mail pori dunia main basic telephony service hay, PTCL bhi day raha hay.

    Hamari companies delivery reports nahi detin: customer phir bhi extra service charges+tax day raha hay

    Telenor call center main 7 rang barangi voices bolti hain, unko ghor say suntay suntay sir durd shuru ho jata hay: customer phir bhi extra call center+service maintenance charges pay kar raha hay

    Telenor+Zong call centers 10 say 25 minutes main connect hotay hain aur early monrning to 45 minutes kay wait kay baad disconnect ho jatay hain: customer phir bhi call center+numainday kay extra charges pay kar raha hay.

    Telenor+Zong kay baaz okat balance checking strings load nahi ho rahay hotay: customer extra service maintenance charges+balance check karnay kay charges pay kar raha hay

    MNP service to waisay he fazool hay, sab networks dosray network kay customers ko zaleel kartay hain ta keh customer haar maan jayay aur apni MNP request ko bhol jayay aur ainda kabhi bhi MNP service kay baray main na sochay, sochay to isay sir durd shuru ho jayay: customer phir bhi taxes pay kar raha hay

    Telecom companies khaas kar Telenor sirf cities main EDGE coverage day rahi hay, villages such as Bhawana Chiniot main inkay EDGE speed 4KB say opar nahi jati: customer phir bhi :)

    Safar kay doran companies kay signals har jagah nahi atay, banda internet musalsal connect nahi kar pata, har tower kay faslay main signals drop ho jatay hain aur GPRS hang: customer phir bhi extra taxes+extra service maintenance charges pay kar rahay hay.

    Pakistan main MMS receiving free nahi sab networks par: customer pay kar raha hay

    Zong nay to MMS to email service he block kar di hay ta kay customers unke Zong share service istemal karain phir email per photos bhejain: customer phir bhi pay kar raha hay

    Customers pay kiyay he ja rahay hain. Aur Networks charges increase kiyay he ja rahay hain. sirf aik network increase nahi karta. sab ke union hay apas main ya PTA kay sath. Sab lootnay kay ikathay faislay kartay hain aur koi nihayat lotera network in sab main aisay ideas philata hay.

    Main nay to apna mobile ka istemal bohat kam kar dia hay. Alternative services skype viber email messaging wagera istemal kar raha hon. aur dosron ko bhi isi ke talkeen karta hon warna lootay jao gay.
    100 main say 40rs say ziyada tax ke nazar kartay ho, 40 ke koi achi roti kha lo sehat banay zindagi banay.

    Aglay ideas jo telecom companies ko pesh kar diyay gayay hain: out of city roaming kay doran 10paisa to 50 paisa incoming/minute charges lagayay jain – service center visit per customer ka number log ker kay phir us say 1rs say 5rs tak service center charges ke katoti ki jayay

    • Aik aur baat. Customer care centers per 80% officers ko handset settings nahi karna ati hoti. kai to keh detay hain is main settings nahi honge apna handset change ker lain :D

      Aur wo log yahan yeh mat kahain “mufta customer”
      hum card recharge kertay hain to sim chalti hay, muft nahi chalti rehti. Sath yeh dhamki bhi hoti hay networks ke itna arsa kuch recharge na kea to sim block.

      Main nay to opar un services ka zikar kea hay jo hamain charges day ker bhi nahi mil rahin.

  • Mahrapah Munir

    ProPakistani: Pakistani telecom customers pay highest telecom taxes http://goo.gl/IzZcC

  • Waqas

    Nice Info.