Telcos to Lose Millions Due to Punjab’s Unclear Stance on Taxes

Mobile phone companies are fearing to absorb millions of loss in revenues due to Punjab Government’s unclear direction on 19.5% general sales tax on internet services, we have checked with sources.

Punjab Government had imposed 19.5 percent tax on internet services through an SRO on May 28th, 2015. This tax was later withdrawn during the budget speech by Dr Ayesha Ghaus, Finance Minister Punjab on the floor of the provincial house.

However, an official notification from Punjab Revenue Authority is still awaited that will officially going to nullify the SRO issued to May 28th, 2015.

Cellular companies are bound to submit their monthly returns on 21st of every month and according to a commercial chief of a cellular company, mobile phone companies will have to submit the taxes on internet on 21st of this month (for the month of June) as Punjab Revenue Authority hasn’t issued any official revocation orders for May 28th SRO as of yet.

Not to mention, mobile phone companies, based on Dr. Ayesha Ghaus’s budget speech, didn’t collect the mentioned tax from customers. Which means, if official notification isn’t received, they will have to bear the loss by giving away tax money from their pockets.

A notification has to be nullified with a follow-up notification, officially issued by the concerned authority

Dr. Ayesha, when asked by The News, said that no one should be worried about the tax as cabinet has approved revoking of the 19.5 percent GST on data usage.

A similar response was recorded by PRA Chief Dr Raheel Siddique, however, both the officials didn’t clarify that when revocation orders for internet taxes will be issued. Dr. Raheel, while advising telecom companies to contact PRA in case of any ambiguity, decided not to comment on when his authority will issue a official notification on the matter.

It won’t be out of place to mention that an SRO has to be nullified with a follow-up SRO, officially issued by the concerned authority or any higher body (in hierarchy) of the the specific authority.

Verbal withdrawal of an order, even on the floor of the house, mean legally nothing.

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


  • Zafar Abbas Rizvi

    Telcos must have to go RTO office by Metro Busses for submission of Sales Tax Return. And than right an article on the benefits of Metro Busses on their respective Official Websites. That will Help them :P

  • Rizwan Yaqoob

    Another step towards #RoshanPakistan. Doing well beghairat league.

  • Ali Ahmad khan

    Our old good friend PTCL has welcomed govt’s decision with an open heart as i received an SMS this morning telling me that “Dear customer,As per the directives of the Government of Pakistan ,Withholding Tax of 14% has been applied on all EVO prepaid and postpaid packages, with immediate effect”.
    Wow! that is awesome guess someone told out finance minister that “3G k bd loug calls aur sms nae krn gai tou internet pay tax laga dou”

    • Pakistani

      @ali_ahmad_khan:disqus Please read carefully, the article is about the provincial sales tax imposed by Punjab government which has not been revoked. However, the message from PTCL is for the 14% Advance Income Tax which is a federal levy imposed by federal government in budget 2015-16. These two are different taxes imposed.
      Now get ready and save money to pay the bill with 14% advance income tax.

  • Dr. Aamir Liaquat Hussain

    Nice try admin…
    when you going for blackout about same tax in kpk and sindh? ir your political affiliations won’t allow you to raise your voice.
    Obviously no one is going to pay that tax once it’s announced.
    You better focus on internet taxes on other provinces coz these political motivated paid posts can’t win elections.