Breaking: Punjab Slaps 3G/4G, Imposes 19.5% Taxes on Internet Usage

Government of Punjab, through a SRO — also known as mini budgets — has imposed 19.5% tax on internet services over 2Mbps and for bills exceeding Rs. 1,500 per month, starting tomorrow.

With this, over 56 percent population of Pakistan will be liable to pay service taxes on internet usage for 3G, 4G, broadband, EVO or anything internet communication with speeds exceeding 2Mbps or/and if the monthly bill for their service  exceeds Rs. 1,500 per month.

And this is going to get implemented straight away, starting May 29th, 2015.

Below is the copy of SRO according to which the tax exemption, that was earlier granted to internet services, has been withdrawn.

Punjab_Tax_Internet

This Tax will Kill The Industry

I feel pity for Anusha Rehman, Ishaq Dar and Nawaz Sharif with their tall claims for efforts that they had made for auctioning 3G and 4G.

Just this morning Anusha Rehman — at an event — wasted more than 30 minutes in explaining how government is supporting 3G/4G and entrepreneurship in the country; the fact is that this government has decided to kill it all.

Considering the high growth rates of internet users in Pakistan, all the planned investment, worth billions of dollars, will be routed to other market and Pakistan will be destined for the stone age again.

Interestingly, this ruthless decision came just a week before the budget so that Balochistan gets enough time to get its sheets right and impose similar taxes on internet usage.

Just to recall, KPK and Sindh provinces are already charging service taxes on internet usage, however, tax in both the provinces in on conventional Internet and not on mobile data. Also imposition of tax on all kind of internet by Punjab — that houses than 56% of Pakistani population — is simply fatal.

Industry’s Response

Telecom service providers are speechless at the development. When I called them up to record their responses, they were clueless, scattered and worried. Sheer amount of depression has caught up the market because it knows the damage this tax is going to do to people, businesses and the country.

One thing they are clear about is to reject this tax. While they are uncertain about the way of rejecting it, but they have apparently decided to not play in the hands of the government.

They said that Pakistan waited for more than 5 years to launch 3G and 4G, and now when conditions are just about to settle down, this tax is going to take us back to where we had started.

Just in case if you don’t know, Pakistan’s internet penetration is lowest in the region.

One official of a telecom company commented:

“It is such a shame that politicians, who prefer their personal pockets over national economy, are such short sighted that they preferred killing the internet industry, eCommerce, m-banking, entrepreneurship and almost entire economy for meeting budgetary deficits.”

Another top level official, said:

This tax has shocked the industry. Telecom companies didn’t invest more than $1.5 billion dollars in Pakistan for 3G and 4G just to face 20% tax on internet.

What to Do Now?

ACT. Respond to this tax by raising your voice, on all available and possible platforms. Call up TV stations, radio stations and express your concerns. Take it to Facebook, and express your feelings. Call up your influential friends and ask them to play a role.

You have to do it now, right now!

We are updating this story in real time.

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


    • Same tax is in KPK and Sindh. Punjab just implemented now, earlier Punjab exempted its people. The news is just biased reporting by showing only punjab is doing this.

      • g g, ap k abba g ki millein chal rahi hain an, paisay trees per lagay hain ap k liye. aur sari dunia k liye right?
        Ya phir ap Ganjo k supporter hain, woh bhi blind supporter

        • ap jiske blind spotter ho wo ye tax badshah banany k 5 month bad sy ly rha ha apne province main.wahan khatam krwao agar ghulam ya blind nhi ho to phr kehna dusron ko

          • ap ko kis nay keh dia k mein kisi bhi politician ka supporter hoon? i am supporter of NO politician. all are Chor luteray

          • You Need To Shut Your Filthy Mouth Or Else I Know How To Shut That Smart Mouth Of Yours Mr Fake

            • and you need to take your middle finger int your A** as I don’t want to put mine in your shi*** a**.
              Remember I am not that fake as your f**** fath** and your S*** M*M
              you better go & F*** yourself

      • because there are pakistanis like you who always think like this. we can do a lot just need to think and change our attitudes.

        Fighting for your rights always requires energy so if you cant fight then sit back and let others do their thing!

        • I am not disappoint from this country, I am just disappointed because ordinary people like me don’t know the right way to protest that really make some impact.

          Agar ham protest karain bhi to 99.99% koi farq nahi parne wala, remember PTA ne already ek order diya hoa hai k koi bhi telecom company 12 paise charge nahi kare gi as call setup charges… laken aaj tak wo paise charge horahay hain and we all 18-19 crore awam are not doing anything but just going with the flow.

          Problem sari yehi hai k sahi protest ka tariqa nahi pata and agar karte bhi hain to kuch nahi honay wala kyon k saray haramkhor bethay hain oper.

          • True that, and the thing is we don’t unite and protest enough at the right places. we need to do that more often.

            and pakistanis need to stop being notorious everywhere, sach apano, pakistan khud theek ho jaye ga, par ye to samajh hi nai ati logon ko.

            Aur Allah hum sab ko begharat hukumrano say nijat dilaye ‘Ameen’.

    • Same tax is in KPK and Sindh. Punjab just implemented now, earlier Punjab exempted its people. The news is just biased reporting by showing only punjab is doing this.
      KPK PTI(tabdeeli) government implement this in october 2013 and punjab now..

    • Same tax is in KPK and Sindh. Punjab just implemented now, earlier Punjab exempted its people. The news is just biased reporting by showing only punjab is doing this.
      KPK PTI(tabdeeli) government implement this in october 2013 and punjab now

  • Punjab wale Tax laga k Economy ko Behtar karne me lage han or Sindh wale Halmet Pehnwane me :D

      • yes agree
        see kpk gov doing this from oct 2013 and youthias didn’t know this

        • Douch, KPK tax is not on 3G. We are discussing here about adverse affects on telecom internet industry. Everybody is thinking about its own pocket but not the industry as a whole. This government has ditched telecom industry by first making them made billions of dollar investment and then trying to destroy that investment. Companies in future will be 10 times more reluctant to make any investment in Pakistan because of such cunning practices.

  • Dont worry people tax collected from internet will be used building metro train and over heads in Lahore. So congrats to Lahories and condolence to rest of Punjab

    • Same tax is in KPK and Sindh. Punjab just implemented now, earlier Punjab exempted its people. The news is just biased reporting by showing only punjab is doing this.
      KPK PTI(tabdeeli) government implement this in october 2013 and punjab now…

    • apke pind ma metro chala dain.sara pind safar kray ga.
      apke coment say lag raha ap kabi pind sy bahir nahi gay or na dunia dekhi na pta
      net mil gya ty coment shuru

      • Yaar aap kisi din time nikaal k Mar kyun nahin jatay? We will be higly obliged.

      • Wese aap har kisi ko Dena apna awwaleen Farz kyun samajte hyn?? Koi nahin b lena chaahta.

        Aap ki Raaye :)

  • Dear aamir
    How will it affect on daily, weekly or fornightly 3g or 4g packages?

  • Absolutely ridiculous. The world has moved on to super speeds in broadband and we will be penalised for going any faster than 2mbps. Still stuck in the stone age thank you Punjab Government. Whenever I feel the need for a faster download speed I will just take a ride on the Metro train and comfort myself.

    • Same tax is in KPK and Sindh. Punjab just implemented now, earlier Punjab exempted its people. The news is just biased reporting by showing only punjab is doing this.
      KPK PTI(tabdeeli) government implement this in october 2013 and punjab now!

  • Since we are paying these tax on internet in sindh since last year. So its not a surprise tht it has been imposed in punjab also….

  • This tax is already enforced in Sindh and KPK. And whats the big deal, we are already paying taxes on everything we buy, so why not on internet as well?

    • Yes only punjab was not taxed now punjab is taxed as well come everyone to world of internet and yes with Taxes… Paisye akahtye karoo Phr looto phr phutoo

  • This might need clarity because I am already paying 10% WHT and Sales Tax on my PTCL bill

  • First you are going to pay tax on every balance load and after that from the already taxed balance you are going to pay tax for internet…. wow …..so one has to pay almost 50% of the amount of the package almost for taxes….. so if one has to enable a 2000 rs package…. he will have to load 3215 rs……

  • These Nooras need to be taught a lesson by Telcos. If this tax gets implemented, it would absolutely kill the 3g/4g scene. Sab se phle Pakistan? RIght!

  • Koi haal nahi propakistani ki bias reporting ka.
    Aese show kiya ja raha hai jese punjab main he ye hua hai or baqi provinces main nahi hai.
    Sharam ani chahye
    ARY join ker lo ap log

  • damn, cant thet see people happy, proper taxation is needed no bullshiz like that -.-

    • Same tax is in KPK and Sindh. Punjab just implemented now, earlier Punjab exempted its people. The news is just biased reporting by showing only punjab is doing this.
      KPK PTI(tabdeeli) government implement this in october 2013 and punjab now…..

    • Same tax is in KPK and Sindh. Punjab just implemented now, earlier Punjab exempted its people. The news is just biased reporting by showing only punjab is doing this…
      KPK PTI(tabdeeli) government implement this in october 2013 and punjab now.

    • Same tax is in KPK and Sindh. Punjab just implemented now, earlier Punjab exempted its people. The news is just biased reporting by showing only punjab is doing this.
      KPK PTI(tabdeeli) government implement this in october 2013 and punjab now.

  • Same tax is in KPK and Sindh. Punjab just implemented now, earlier Punjab exempted its people. The news is just biased reporting by showing only punjab is doing this.
    KPK PTI(tabdeeli) government implement this in october 2013 and punjab now….

  • aur karo sharif brothers ko vote, and if this is already in KPK and Sindh then why are you so proudly saying it. Do something… oh wait, we are too coward to take a stand.

    • If paying tax is bad then obviously we do. unfortunately people in pakistan don’t want to pay taxes from last 50 years and blame governments for not doing anything and demand so much
      Don’t start with nawaz zardari now.. I said from last 50 years or exactly from 1962.

      • Who said paying tax is bad? not all people in Pakistan, only the rich and powerful people in Pakistan do not want to pay taxes in Pakistan. I see you are a PML-N supporter, no wonder you are saying not to blame government hahaha. I can give you 100 names from the government who have not paid taxes. WE the commoners have to pay taxes and if we try to take a stand we are sent to jails. But the people in government are exempt from taxes

        • Please clear mention only 0.04% percent people pay taxes in Pakistan. It means only 7 lakh people (about) pay taxes out of 190 million. Shahid Saleem is included :P

          • 7 lakh?? my boy, the whole pakistan has to pay taxes. the only ones who don’t pay taxes are people who are powerful and rich. The middle class families have to pay taxes and the corrupt and rich dont

            • I know ! It’s not my static! I watched a program of Hasb-e-Haal a year ago perhaps! Junaid Saleem explained that. For more detail, Wikipedia is for you. If you need the proof, I will have to find the program then I will send you. What do you think, should I start to search the program?

              • We the middle class families are paying taxes on
                1.GAS
                2.Petrol
                3.Internet
                4.Water
                5.House
                6.Buying Cars
                7.Buying Electronics
                8.Food
                9.Generators
                etc etc etc
                the corrupt, rich and powerful are not paying any of these taxes. Hasb e Haal drama lage to mujhe neend ajati hai isiliye dekh nai pata :P, tum kaise dekh lete ho haha

              • wikipedia and media is your source….
                clapping for you..always study yourself beta g…

                • Uncle G! I’m talking about Income tax. Wikipedia says only 0.57% people pay income tax whereas my source is not Wikipedia rather Hasb-e-Haal where Juanid Saleem explained that only 0.04% people pay income tax. If only 4% people pay income tax we will see miracles. The program was 3 years old, I have become tired how to find the program on Google.

        • I am not supporting anyone or any government. I know no politicians pay taxes and many rich people didn’t pay. But that doesn’t mean no one need to pay tax. We don’t have 70 % rich people as only 30 % pay taxes. No one want to pay taxes here not because of governments that’s my point.
          Blame nawaz zardari but this not going to make things better unless blame yourself. I know IK and how much tax he paid.
          I know better that how many politicians, Bureaucracy , Establishment pay taxes.

          • hahaha so you are saying that it is OK for politicians to not pay taxes and only the middle and lower class should pay?? No body wants to pay taxes because everyone knows that it is going into their governments own pockets and not being used on public. Why should we blame ourselves?? we the common people of pakistan is paying taxes. everyone knows how much the politicians pay taxes but because they are powerful thats why nobody is doing anything

            • Where did I said its okay? and No body wants to pay taxes here because government and politicians used this. I told you that tax problem in Pakistan started in 1962 not today.
              And many rich people do pay taxes.
              How much tax you pay and your NTN number please?
              Second go and see how many rich people in Pak and how many who don’t pay taxes.
              assaan alfaz main agar 10 % tax dete hain or 90 % nahi dete to apke hisab say Pak main 90 % rich log rehty hen…aqal ko hath maro

              • hahah mere paas to itni daulat hi nai ke mein tax pay karon, I dont have 100 crores of ruppees or 10 mercedez benzes or 100 kanals of farms. Taxes 80% awam deri hai aur 20% nai deri. I and every middle class and lower class pay tax on water, gas, electricity, import car, petrol, food, everything we do has a tax and the rich dont pay even little bit. And we are paying it with our own money. Lets be clear on one thing, my point here, if you understood or not, is that the governments are implementing so much tax on lower and middle class families that it is becoming hard for people to live. Humen itnay taxes se kia benefit hua abhi tak? nothing null shuniye. Agar internet pe bhi tax lagadia to humen PAY karna hi parega else no other option. but the rich do NOT have to pay it. And reason for this is because of the government

                • wow you just change your stats about tax payers.
                  grow up and stay in reality
                  blaming won’t solve anything
                  what you are saying is sales tax that you pay. every rich and poor pay sales tax.scenario for income tax is different

                  • Read my comment from the start very carefully buddy, I never talked about income tax in any comment. Income tax is a whole another story.

                  • First of all tell me which tax are you talking about….direct tax or indirect tax….
                    From buying a small juice to vehicle everything is taxed in Pakistan and that is called GST…Sales tax is a must for every product bought….like the card we load gives 75 rs…..that every pakistani pays…..indirect tax…..
                    Talking of direct tax is income tax is the one no one pays of which hype is created k no one pays tax reason
                    The powerful upper class dont pay tax( direct tax )resulting in increased indirect tax….
                    The middle class/lower class is heavily taxed indirectly like GST service tax import charges etc that has little effect on rich

  • I feel bad for the telcos. Now they have two choices. They can either cut the prices or they can leave them as they are (needless to say, a lot of the consumers are going to downgrade their connections). Telcos lose money either way. Retrograde step.

  • 3G/4G in Pakistan is not necessity rather than luxury and is being missued in worst possible scenario (Telenor unlimited download). This must be stoped and I always recommend to slap heaviest taxes on ‘Luxury’ items/goods/services. same goes for auto industry!

    • SERIOUSLY? Not a necessity? IT BLOODY WELL IS A NECESSITY FOR PEOPLE WHOSE WORK DEPENDS ON THE FRICKIN’ INTERNET! Maybe, not for someone as ignorant as you – who must be spending most of his frickin’ internet time on shitty social networking sites, to watch porn, or to download torrents — but for people who are productive, it definitely IS! and no, the internet is more of a necessity than a luxury. Get your head out from under that ass of yours, and you’ll see the light of day, and realise how important the internet has become, dimwit.

      And, if you’re so butt-hurt about Telenor’s allowance of unlimited downloads, why don’t you join a Mullah and ask him to launch a Fatwa against it, eh? hahahaha
      What a pathetic, myopic loser! It’s losers like you who wont ever let the country progress smoothly! It’s because of ignoramuses such as you that we’ll always have hindrances in our path before we achieve the status of an “advanced nation”. In fact, as long as scum such as you thrives, we’d have to bear such fucked up taxes, and we’ll take ages to achieve such a status!
      Oh, wait! Seems like you’re one of the nooras! hahaha no wonder! :D
      Why don’t you mind your farms, and focus more on making more roads, sonny?!
      Someone like you can never differentiate between a “luxury” and a “necessity”.

      The people will voice their opinions and the government will revise this shitty decision. Don’t you worry, you butt-hurt, numbskull! :)

    • Oooay Soi hui qooom, tmhay intna bhi nai karta kay business hamysa Best Infrasturcture kia base par progress karta hay …. Yeh sary IT industry jo Metrolpolitan cities main concentrated hay woh isi liay hay kay Wahan par sari facilities hain …

      Agr Best infrasture + Trainned HR available tu yeh Industry Kharan, Pasu-Gilgit, Mithhi Sindh mai bhi lag sakti hay…. And 2ndly, 3G/ 4G LTE sitf totay dakhnay kay kam nai a ta …. it is method to communicate with each … Aik mazdoor KSA say Sawat main apni family say bat karta VoIP par …. Samjh main ai …. Chawal….

  • @aamir7:disqus
    You can’t listen to criticism. Prove me I am wrong instead of deleting my comments.
    SHAME ON YOU PROPAKISTANI AND AAMIR AATA

      • Show your comment policy please.
        I am replying to people here. what if I reply to everyone. Disqus itself not allowed multiple comments
        See the picture ..both comments are different.

        #ShameonProPak

          • hahaha I loved the ShameProPak hash tag hahaha, aaj kal har cheez ka hashtag

            #meintattikarrahahon

          • We can Edit/Delete Your Legitimate Comment

            I have seen your monarchy. Thanks

            #ShameonProPak

            • Kabhi kisi aur website pay negative comments kar k daikhye ga, apko achi tarah monarchy feel hogi :-)

              • Main kisi or website pay IT news kay liye nahi gaya atleast from 2008, kabi kabi ya boht kum. However ab yahan bhi wesa he ho raha hai…
                Ateast 7 years say hun is site per.. I know ab yeh wesi nahi rahi or comments policy seriously no difference

                • Sir, can we focus on topic please? Agar mujh say koi shikayat hay tu mujhay call kar lain pls.

                  • No need to call.. you doing your job good.
                    I personally dislike the reporting. otherwise I always admire you as a blogger, you and zeeshan shafquat.
                    keep it up !

              • aamir bhai ye pakistani awaam ka kuch nahi hony wala na hi isny sudharna hai is awaam ka daanda peer hai bus

            • you are a faketurd, haughty condescending douche. get lost pls. Now, what value does this bs comment add to the blogpost? None. So I will not whine if it gets removed.
              You have too much free time on your disposal. Junk that comes out of your putrid mentality wastes perfectly cool place. You do not even know when and why to shut up.
              Mind you, PP is perhaps the only local site where comments are not filtered by fascist retards and crybabies. Take your bickering elsewhere, and dont spoil it for the rest please.

              • I do not reply to Ignorant/Stupid/Retard who suddenly jump from no where

                • when some1 plugs all ur holes in one go, they are obviously stupid for having wasted their time. off u go…your balls havent even dropped yet. Grow a pair and then you might return.

                  • you are only proving that you are a c***ks***r but your entire background is compose of w****s. because just cause you were molested by your fa**er(no one can be sure that he is your real one), you assume so was every one else. So shut your filthy mouth you sellout w***e. None of your f***** business here, you sellout f***. dont talk to me
                    > Admin don’t delete my comment if you approve his

          • and btw shak abilities per nahi hai bilkul but niyyat per hai.
            I stand on my point and I didn’t find similar news n Propak on oct, 2013 and you better know why. Apne jo comment delete kiye hain wo apne parh ker kiye hain.hope so samaj gaye hon gay.

            • jo comments delete kiye hain, they were repetitions. Otherwise iss site pay koi comment delete nahi hota.

              • one is repetitive but not the second one was different.
                However leave it.. you know better..

    • It was more spam than comment. However, I do agree with you. BUT historial precedence doesn’t make everything alright.

  • “And this is going to get implemented straight away, starting tomorrow, i.e. May 29th, 2015.”

    Do you mean June 29th?

  • Ye tou hona hi tha, warna har eik ko internet ki sahulat miltey dekh hukmarano ko qabaz ho rahi thi…
    unhein pakistan ko agey nhi barhana, apni lohey aur cheeni ki milein agey barhani hein.

  • Can anyone explain to me as to exactly ‘why’ we need to pay this tax? I hope it isn’t because we are ‘leasing’ their phone lines.

  • This tax is a legitimized extortion. Im certain those who prepared this summary were smoking cheap smudd bond. They left so many inconsistencies. For instance, is tax on total bill or the cost of service only? is 2mbps exempt? is it sales tax, WHT, FED or something else? 2mbps student dsl pkg costs rs.1549 and could it be tax free?
    I hope ISPAK moves to courts to get it struck down.
    No tax on Hamza’s dudh/dahi business, what a sarcasm.

  • Stop clenching those butt holes, people. Ramzan is on the horizon and we have so much more to hear from our beloved government.

  • Why you were quite when kpk govt led by sonami khan imposed tax on internet usage??..???? You are dumb writer,

  • O bhai baki subon mein ye tax phle hi lag chuka he
    ye to sirf Punjab ko be izzat krn k liye post is trha likhi gai he
    lekin phir bhi ye step bht ghalat he.

  • Aamir bhai this is already imposed in Sindh for very long now. So are you going to raise voice for that too?

  • act? :)
    Pakistan has rule of Jungle. it doesnt have democracy, it has evil kings enslaving pakistani people. but still millions of fools think we have democracy :)

      • Sir app ko ab me kya kahon…..tum jaisy jahilo ne he is mulk ka bera gharak kiya hay.
        Na soch na samjah or ye mentality.
        Go and die because Education bhi tumhara kuch nahi begar saki.

  • My PTCL Broadband package is 2,999 per month but I pay 3,840 Rs each month including package charges, FED Tax, Sales Tax, W.H Tax etc. That’s almost 30% tax that I’m ALREADY paying. Another 20% would mean, we’re paying 50% in taxes on an unreliable service which has latency and speed issues all around the month.


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