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


  • Gulab Shah

    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

    • Farhan Tariq

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

      • hayat

        Yeah right …vast experience of nepotism, corruption and incompetancy

    • bustedemotions96

      Sher Bano Sher! :)

    • Ali Salman

      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, teacher..no 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.

      • Gulab Shah

        u only seem happy for that

      • M.Aswad Mehtab

        “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 …

      • Rizwan

        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.

      • zulfiqar ali

        mr ap kia samajte hain app se tax lekar yeh hukmaran mulk par kharch karte hain??

      • hayat

        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……..

  • Danish Mughal

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

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

    • Alone ©™

      sub Apne pass se mafrooe laga Rahhe haii

    • Sunny

      Haha Danish g Noora ???

  • so 3g will never come in pakistan

  • Nasir

    WTF…?

    • Gulab Shah

      the government everyday fcuk us

  • Muhammad Anas

    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!

  • Gulab Shah

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

  • lutf urrehman

    yah tu zardari ka baap nikla bhai……….

    • Farhan Tahir

      Yeh bat ap ko ab pata chali hai :)

  • Sajjad Sohail

    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.

    • Ahmed.S

      if 45 Rs is deducted from 100 Rs then we are left with 55 Rs
      100-45=55

  • Pakistani Politics

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

    • Farhan Tahir

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

    • Ronin

      You just restored my faith in the sheer stupidity we are capable of.. thanks

  • Guest

    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 !!

    • abc

      and middle finger of those who voted to YOU…loser

      • xyz

        you are the real loser kid

    • guest

      middle finger for you

  • Guest

    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 !!

  • kurrupt

    awesome news for N league voters heheh this is their economic blast

  • Mohammad Ali

    wth we condemt

    • Guest

      What the **** you are talking about? Speak English or Urdu please…

      • Mohammad Ali

        Wtf likha tha lagta ha auto correct ho gya :-P

  • asim

    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.

    • Mohammad Ali

      Agree with you inko maza aye sath dyny ka ganjo ka

      • aaa

        batmeeez bolne ki b tameez nahi tume……..

        • Mohammad Ali

          Oye tum rakho tameez apnay tak ye sirf ganjay nahi BC ganjay hain okay salay corrupt

    • Farhan Tahir

      Their voters will stil vote them.,Dumbs always remain dumb

  • Ahmad

    Hor dyoo vote enaa ganjyaan nuuu :P

  • Ahmad

    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۔

    • mr bean

      kuttay tm tao chup ho jau

  • Imran

    WELCOME PMLUN !!

  • ahsanpetarian

    time for awam to get ganja,,,

  • Nauman

    Wow…. Taaliiaaaan.. it’s all GST (Ganja Sale’s Tax) !!!

    • DON

      tumare abu Ganjay hain kya?

      • Nauman

        aap ny ghr ly kr jaany hn kia ???

  • Ahmed

    Sheeeeer ko vote dyne walooo, abb sheeer bano :P

  • Sumair

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

  • Saad

    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”

    • zahid

      There is no time for humor. Utho Jago. come on the streets man.

  • Sickened by the PML-N Govrment

    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!

    • nadeem

      Inshaallah , they will last only 6 months. Sub kutch ulta palta hojaiga if they continue taxing poor awam like this.

      • abc

        Laaanat ho tum pa nadeem

  • Haris

    I am very happy with this move. Salute to all the PMLN voters… hore choopo

  • Adil

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

  • saif ur rehman

    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

  • Hate Politics

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

  • M Faheem Usama

    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..

  • paki

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

  • Qaiser

    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

    • Hassan Bashir

      lolz to u…….no impact on poor?? bullshit…….go get a life…..

    • Waqas

      I assume you’re out of your mind

      • Qaiser

        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

        • MHAS

          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.

          • Qaiser

            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.

            • MHAS

              “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.

            • Shaan

              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.

          • Waqas

            I agree with what you’ve said

        • Shahid Saleem

          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.

        • Adil

          come out of the fking stone age

    • Amir saeed

      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.

    • Pakistani

      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.

    • KhilafatZindabad

      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.

  • moxet

    Now enjoy your PMLN (Pujnab walo)

  • khannn

    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.

  • Saad

    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….

  • Reformer Economist

    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!

    • Shaan

      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.

      • Shahid Saleem

        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.

  • Amer

    We should not accept it but stand against it.

  • Shaan

    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 http://en.wikipedia.org/wiki/Withholding_tax

    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:(

    • aamir7

      We will do a separate post on this. Thanks for asking.

  • Aziz

    Fuck Nawaz league!

  • @mani

    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.

  • angry man

    دیکھو دیکھو کون آیا

  • angry man

    who said… telecom sector untouched this budget…

  • Pakistani Politics

    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.

    • Shahwani

      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 ?

      • Pakistani Politics

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

    • True

      you should be saying adjusting their bank balance what a loser

      • Pakistani Politics

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

  • am i the only one who is looking for authentic source of this news?

    • Shahid Saleem

      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.

      • aamir7

        Shahid Sb, consider us the source :-)

        • Shahid Saleem

          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.

          • aamir7

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

            You probably need to search the Web.

            • Shahid Saleem

              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.

              • aamir7

                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?

            • Shahid Saleem

              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?

              • aamir7

                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.

              • aamir7

                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.

  • Boyesa

    Dekho kaun aya kaun aya :D

  • Husain Akhtar

    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.

  • Boyesa

    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?

  • Zafar Awan

    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

  • Farhan Tahir

    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.

  • Shahid Saleem

    I CANNOT FIND CONFIRMATION OF THIS ON NEWS SITES.

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

  • Jibran

    The total tax would be 37.42% other than the service and maintenance charges.

  • Gul

    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.

  • Mushtaque

    Very sad to hear it. Allah Pakistani quom per raham keray.

  • Sulaiman

    ab esa lagta hai ke zardari ka dorr hi kuch munasib tha??? wht do u say guys

  • Syed Asad Ali

    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????????

  • umer

    aur do vote PML Nawaz and PPP ko.

  • Waqas

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

  • Telecom Economist

    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.

  • Tanha Musaafir

    its not 5% ..its 7% plzz correct it admin

  • tasawar hussain nasir

    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.

  • tasawar hussain nasir

    get for any information to call us………03434010997

  • tasawar hussain nasir

    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.
    03434010997

  • Mehran Shah

    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…..?

  • Expat

    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?

  • Cgill

    Looto kutto looto. Aik he bar khoon pi jao. Jaan chutay.

  • Qaiser

    Ab Sirf Msg per hi hi kaam karo bhayooo.