Pakistan Imposes 5% Additional Tax on Telecom Services

individualPakistan has announced to increase the tax rate on telecom services, a sector that is topping the taxed list, by 5 percent from July 1st, 2013.

According to Mr. Ishaq Dar, the Finance Minister, all telecom users will now have to pay 15 percent withholding tax, which was previously settled at 10 percent for last many years. Mr. Dar said that proposal has been incorporated into the finance bill after consultation with the concerned stakeholders.

Mr. Dar, in his briefing to National Assembly today, said that this increase in tax can be reimbursed to the customers as it is adjustable in the yearly financial assessment of the individuals.

List of Taxes on Cellular Services

After this increase in WHT, taxes on cellular services are as following:

  • WHT: 15 percent
  • FED: 19.5 percent
  • Total: 34.5 percent

In addition to these government taxes, every cellular operator in the country deducts 7 percent service charges as well.

42% of Load Goes in Taxes and Charges

A customer loading Rs. 100 card will be taxed as following:

  • Initial Load: Rs. 100
  • Remaining amount after WHT (15 percent): Rs. 85
  • Remaining amount after Cellular Charges (7 percent): Rs. 78

After loading a Rs. 100 card, a customer will be left with Rs. 78 of credit for airtime usage. Out of Rs. 78, another 19.5 percent of FED is also deducted

  • Remaining Amount After FED Collection (19.5 Percent): 58.5

Hence, a customer will have to pay Rs. 41.5 out of Rs. 100 in the name of taxes and service charges. This explains that how government is getting greedy about collecting taxes from telecom users.

Analysts believe that the move is not well thought of, as taxing the most taxed sector can fireback and may hit the annual collections made through taxing the telecom sector.

Tech and telecom reporter with over 15 years of experience, he works as founder of ProPakistani.PK

  • welcome pmln thanks for poeple of pakistan for voting them thanks for those poeple who doesnt think before voting thanks for those who never think about pakistan thanks and thanks

    • You are right bro. They thought to vote for them cuz of their vast experience. and its just the beginning…….

    • Suggest something to Government to collect money for paying off debt and run machinery of this country ? Rather criticizing, lets think over what were we doing when last government 8 Trillion Rs. of loan, lets know how much tax we should pay and how much we pay. We are one complaining nation which always expects and never is willing to give. Rich, poor, farmer, industrialist, labor, body wants to pay tax. PPP government printed more currency bills knowing that this nation will never be willing to pay tax so lets please them this way, knowing its result.

      • “Qoam ka luta hua pesaa wapis la kar qoam k qadmo me nichawar kar den gy ” Ye Line to suni hi hogi :D

        Pakis have more black money then india in swiss banks …

      • Dear Ali Salman sahab, Increasing tax on those which are already paying is never solution. Make them taxable those are not paying is only solution for better performances but your status-qo don’t want to do it just because in that case they will be taxable.

      • Yes people hesistate to pay taxes because nations and countries are built on trust and transparency…..Give me one good reason why should we pay taxes in this system……Your government is corrupt, your judiciary is corrupt , your election comission is corrupt and your police is even more corrupt……Why should we even pay taxes in a failed system that is not even willing to look into its deficiencies and improve itself to support all these corrupt people……..

  • 58.5 Rupees Remaining amount after charging a Rs. 100 credit?

    Noora League Tum tou Zardari or PPP k bhee BAAP Niklay :D

  • This is really gone insane! I read some where that you’ll be left with Rs 10 after loading a Rs 100 card and I lagughed on it but now I think I was wrong!

  • when they cant increase the gst so they increase that so nice of them keep it up good

  • We receive about Rs. 81 when we load a Rs. 100 card now we will receive about Rs. 75. Overall we pay Rs. 45 as taxes and service charges if new tax is passed correct me if i am wrong.

  • Good step by Govt. It will decrease the usage of mobile phones in pakistan

    • Good step? and why is USE of mobile a BAD thing? if mummy daddy bachay mis-use mobile, so ban mobile?

  • This is BULSHIT !! Rs. 40 for taxes !! This is not acceptable and Why they are putting more taxes on cellular services rather than giving taxes on their on incomes!! Middle fingers for all those who have voted for PML-N !!

  • This is BULSHIT !! Rs. 40 for taxes !! This is not acceptable and Why they are putting more taxes on cellular services rather than giving taxes on their own incomes!! Middle fingers for all those who have voted for PML-N !!

  • Im very happy PML-N government is making things harder for people of Pakistan who voted for them. Hope it gets even more harder for the stupid people who had a chance to change the system but again voted for PML-N.

  • شیر کو ووٹ دینے والو اب شیر بنو
    اور چپ کر کے دیوار کے ساتھ لگ جاو باقی کام یہ گنجے خود کر لیں گے۔

  • bhaiyo aur behno sher 13 saal se bhooka tha……ab sher ko vote dene walo, sher bano!! :D

  • Coming soon from PMLN

    When you will load Rs. 100 card the voice will tell you:

    “Rs. 100 have been adjusted in all your taxes, please load another card to make calls and use telecom services”

  • If this Ganja Hakoomat remain 2-3 years more, there will be no 100rs card load because 100rs will be deducted from the balance when card loaded.
    its F***ing shit!

  • its time to get shifted from traditional call and sms to Viber, Whatsapp and skype world.

  • pakistanion ab kia karega ye to sarmayadar hia jo k hm hakomat karte hai or hm her ros unke cruel nishana bnte hai plz bahar aye ur unka muqbla kare plz contact me 03099771658 main apke hqooq k lia larooga but plz come with me thanks pakistaneis

  • Keep It Up GoV …. Kill Every One Pople dont deserve to live in this Country …

  • This is the only way for government to beg from public as we have made cell phone usage the initial part of our lives. Actually its not begging, we can say it robbery..

  • Chooos lo aour chooos lo. We should donate our mobile phone sets to goverment. Allah kher kare

  • Mobile phone is not our basic necessity there is no impact of this decision on poor people. I think this is very good step if the recover amount will be use in right direction and it also reduce negative use of mobile

      • lol how it impact on poor people dear poor people need food shelter these are our basic requirement not ganta package and 5000 sms pr day if gov recover amount use to give subsidy on basic necessity then it will be wise decision

        • As if poor people live in isolation and they don’t need to communicate. Come out of the stone ages, mobile calls are obviously part of the basic necessities, don’t take it out of the reach of poor. And stop being judgmental using terms like negative use of mobile, it is a personal trait of a human being the way it utilities the technology, based on your assumption the rates for internet should be also increased to avoid negative use rather it should be banned in the country, Kudos, no doubt people like you deserve such leaders.

          • lol i never said that people don’t use mobile phone but use for need not for the enjoyment and if you use for enjoyment then pay for it and dear basic need according to poor people not people like you and every thing has two impact one is negative other one is positive so if something having negative impact more then positive then there should take measure to reduce it and you cant make compression of mobile with internet put logic in your argument & leave this who deserve them.

            • “compression of mobile with internet put logic in your argument?”improve your spellings and coherence in your sentences for the better understanding of a reader.

              Tax the enjoyment, as poor have no right to enjoyment. Keep living in ignorance.

            • Something which most people don’t understand about what WH tax is?

              WH tax is a sort of advance tax which credit against the taxable income of registered taxpayers. e.g. Employes, Companies and Individuals.
              Then on annual tax return file this is adjusted against the total tax amount, and maybe the subject of refund.

              Now the problem is that how can one claim a refund if his total annual income is under the taxable limit? i.e. he don’t have a NTN?

              This is how the crises buildup when a greedy govt blindly impose unjustifiable taxes on common man to Please IMF.

        • People like electricians or plumbers or other workers like that DEPEND on the calls they receive to get work on a day to day basis. And they’re not rich people.

    • Dear Qaiser, You are very naive and simple citizen. The money will go to so called parliamentarians, judges,( by increasing their salary & perks), bureaucrats, security for VIPs, theft – eventually buying property in London, New york so on. I will appreciate if they abolish GSt on all food products, packed or not packed.Bring food prices to Musharraf era level.

    • I am agree with Qaiser. I think mobile is not our basic Necessity. We want to give the special discounts on our basis necessities like food, home, bills to our low salary people.

    • Poor peoples donot afford Lanline. They do use mobile phones because it donot have monthly rent and other bullshits. Petrol is also not our basic necessity? we can use bicycles?. Electricity is also not basic necessity. Peoples in old age lived without electricity. Oh we donot need anything… our basic necessity is only Roti, kapra(now leafs), makan(now trees). Mr. Qaisar comeout of you little thoughts and oppose taxes.

  • They should through us out from this country.everywhere checking for security reason everywhere we have to pay taxes an everywhere we have to face each and every thing.. now I dont like to live here in this country .they should throw us out from pakistan.

  • Aur do na PML N ko vote yeh banda tou aya e hum sy 1999 ka revenge leny k tab logo nae mujhy arrest kerne per awaz ku nhi buland ki…ab logo ny isko vote diya ha tou bardasht karo na g….

  • Withholding Tax (WHT) is adjustable in the final tax liability. So the net impact on existing taxpayers will be zero (0).
    It is a good step to bring the people in tax net for a country like Pakistan that has lowest Tax-to-GDP ratio in the world because most of the people chant slogans of “change” but are unwilling to pay their taxes!

    • Do you know who’s targeted by this tax?

      How can one be taxed if his/her total income is well under taxable range?

      To increase the tax range the good way is to broaden the tax net. .i.e bring all these Jagirdars , Waderas, Chaudharys and other big fishes under the tax net, and not to target already targeted poor.

      • How many poor people at the low end of the economic spectrum have phones but no NTN numbers? I am sure my gardener has a phone but he doesn’t have a tax number.

        So when he is charged this extra withholding tax, he’ll never get it back.

  • Admin please guide us. How can one claim for the refund? Specially when majority have no NTN numbers.

    I believe this (WH tax) is just absurd and wrong, but if necessary then it should only be collected from customers with NTN numbers, since it’s a re-adjustable tax and maybe refunded in annual tax form. See

    Now how many mobile and telephone users have NTN or taxable annual income? maybe just 5% or max 10%??
    So that means rest of 90% are just the victims of blatant ripping:(

    Who ever started (I think it was also PMLN back in 97) this trend of imposing WH tax on telephone bills and Mobile Phone cards were bad decision makers. Instead of boarding the tax net Or imposing tax on the big fishes, they just targeted the poor nation:(
    So shame on this PMLN for going back on the same track again:(

  • i thnk rather siting and commenting, PPl should come out on the streets and let these fuckers know what is the power of Nation, these retards always try to suck nation rather doing their jobs honestly and generating income.

  • If people have any problem with these taxes then please recharge Rs 10000 for each network before first July for the whole year of 2013-14 because taxes will decrease in 2014-15 budget. Its just for adjusting the bank balance of govt accounts to accommodate with better facility to the people of Pakistan.

    • Prepaid users can keep maximum of Rs. 2000 balance. And why should we do it, just because our finance minister is incompetent or government too scared to tax rich ?

      • Our Prime Minister is good but their team is not good, that’s why this happens

      • I mean that Khazana abhi khali hai, so they are applying additional taxex for just a year to adjust previous corruptions.

    • I am being searching for days now. I DO NOT TRUST unsourced news like this. Even my request to the admin in comments and on Facebook was ignored.

      I have my doubts. Serious serious doubts.

        • Are you the Finance Minister? Were you in the National Assembly listening and watching when the announcement was made?

          No to both questions, so how can you be considered the source?

          I mean, when all the texts and recordings of the budget bill do NOT mention the increase, and when no reputable news site mentions it iether, then you can understand my doubts.

          • All REPUTABLE media houses (print and electronic) reported this.

            You probably need to search the Web.

            • I searched. There was NO mention of it on Dawn and Tribune and Business Recorder, and I said so in my comments.

              All you had to do was link to ONE SINGLE ARTICLE that mentioned it last week. Instead of trying to upshow me, do it.

              • Sir, ap mazak kar rahay hain…

                Search for this “15 percent WHT”

                And how could I link to any article when I was first one to report it?

            • If you know of evidence, present it. I DID my research (and yes, I know how to use advance Google search parameters with date ranges) and no, I DID NOT find them on the sites I mentioned before July 1. Or are you going to say they are not reputable?

              We’re having this discussion because I can’t simply take your word for it. How many unsourced stories have you gotten wrong? I know you can’t say “zero”.

              I mean, come on, robotic sounding robocalls?

              • You are free to not to trust me. But, how many stories coming from unnamed sources were correct?

                It sounds amateurish to argue on this. So, all I will say is k I had a story, I published. You can trust it, or otherwise don’t.

              • You are free to not to trust me. But, how many stories coming from unnamed sources were correct?

                It sounds amateurish to argue on this. So, all I will say is k I had a story, I published. You can trust it, or otherwise don’t.

  • Imran was right when he said that Zardari & Nawaz want to loot Pakistani Awam one by one.If treasury is empty catch PP govt. for past corruption & looting. If money is brought back in Pakistan from culprits like tauqir sadiq, there is no need for additional taxes. Where is Judiciary? partners in corruption and looting? Taxing telecom services is like robbing common man. Why not they tax land lords and riches?
    Inshaallah soon a bloody revolution will come.

  • Why there are service charges of 7% , are they providing us the service free of cost ?

  • Looks like the government is trying to move prepaid users to postpaid as they were failed to imposed BAN on prepaid SIM. Or there is something similar for postpaid users as well?

  • Calling rates for different Telenor talkshawk packages will be revised from 26th June ’13
    Dear Customer,
    To ensure provision of smooth services, calling rates for Talkshawk Economy, Talkshawk 24 HRs & Talkshawk 30 Sec Package will be revised from 26th June ’13. Following are the details of price change.

    Price Plans Current Rates
    (All Local Networks) New rates
    (All Local Networks)
    TS Economy 1.9 / Min 2.0 / Min
    TS 24 Hrs 1.8 / Min 2.0 / Min
    TS 30 Sec* 80 Paisa / 30 Sec 1.8 / Min

    *TS 30 Sec Package is also being renamed to TS Value Package.
    Kuch Govt Tax barha rahi hai to kuch Companies. Cell main load kerva do aur samne rakh ke balance urrta dekho. Hath Mat Lagao Mobile Ko

  • Sher aya Sher aya.
    Lanat on All of those, who are supporter of the Sher and Democratic system.
    Now their own SHER is going to come and eat everything from their income and is going to through them on streets.


    Can Admin please link to a reputable site with this WH story?

  • What does the Govt. want to achieve with this step? Do they want to decrease the Mobile phone usage in Pakistan? Those in Govt or services (both in Govt/Provincial or Army) get loads and loads of money for their phone bills, so they are not effected with this. The only one hit with this will be other citizens.

    Instead of bringing back their own money (and those looted by others), they want to earn more and more from people by getting last drop of blood.

    Those who say we are not a tax paying nation should see why are people like this (although I still believe salaried people and other masses are paying loads and loads of taxes both via income tax and GSTs)? What do they get in return when they are paying tax? Karachi the city which pays most of the tax (as compare to other largest cities) and still bleeding? No peace and only dramebazi from last 6-7 years? Situation of law and order in all other major cities is also not good but gave an example of Karachi as it is a more effected than others.

  • I can’t believe u said all this. This nation has every right to be complaining where 70 years have gone but we r still beggars due to those who ruled us. Do I need to say more?

    The whole world don’t want to pay taxes if they know that the money will be put into a bottomless bag. Do they? Secondly for Gods sake it’s not a rocket science to understand that indirect taxes will never solve the problem unless you get everyone into the direct taxation net. WILL YOU EVER UNDERSTAND THAT????????

  • So after that i am think about the Past when we live without mobile…. I am going to use mobile phone

  • The only change the Federal Budget-2014 has made is increasing in Withholding Tax (WHT) from existing 10% to 15%. Under section 164(1) of the Income Tax Ordinance 2001, WHT is adjustable in the Final tax liability of the taxpayers.

    It implies that a person can claim the benefit of WHT already paid and his/her final tax liability is reduced by the same amount. Hence there is no incremental impact of WHT on the existing taxpayers while non-taxpayers will be encouraged to register for their National Tax Number (NTN) to claim the WHT adjustment in their final tax liability.

    If we look at the country where only 17 people out of every 100 people are paying direct taxes, enhancement in WHT is an effective tool to bring more people into the tax net.

    The educated people are expected to encourage the government in implementing economic reforms rather than becoming a shield of “vested interests” to oppose every fiscal measure to tap domestic resources.

  • Im very happy PML-N government is making things harder for people of Pakistan who voted for them. Hope it gets even more harder for the stupid people who had a chance to change the system but again voted for PML-N.

  • If this Ganja Hakoomat remain 2-3 years more, there will be no 100rs card load because 100rs will be deducted from the balance when card loaded.

  • YA!!! Its All GST means Ganja Sales Tax…. I think they should increase tax rate for higher income instead of increasing tax on telecom usage. Why they not increase tax on higher income????that’s Why becuz those tax rates implemented on themselves…..?

  • Not just my jazz reload remained rs75 each 100, imagine having a plate for 2pc kfc meal + small cup drink cost nearly rs500? In malaysia just about rs250 + medium cup size drink but the taste not even reach kfc level I used to taste in my country. How children gonna eat an overcooked nugget?

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