Telcos Thank CM Punjab for Removing Internet Tax, Commit $4 Billion Investment

Mobile phone companies, in a joint letter signed by CEOs of all local operators, thanked Mian Shahbaz Sharif, Chief Minister Punjab, for removing internet taxes. Telcos, in the same letter, committed massive investments in the sector during next four years.

According to details, a recently sent letter paid gratitude to CM Punjab for listening to industry’s input and other stakeholders on the matter and reversing 19.5% internet tax that was imposed by Punjab Revenue Authority for internet usage in the province.

Letter said that sales tax on data services imposed by Punjab — largest province with around 60% of Pakistan’s population — was a major barrier to proliferation of next generation cellular mobile services because it restricted access and usage by reducing affordability.

Telcos said that tax could have led to higher cost of operation and reduced returns to capital employed and investments for mobile phone operators, thus hindering the growth of the sector and development of new and more inclusive services for users.

“We are grateful that you with your personal intervention the sales tax levied on data services has been withdrawn”, read the letter.

Mobile phone companies committed that removal of internet tax will encourage the efficient rollout of high capacity mobile broadband networks that will spur further investment and socio-economic growth for industry in general and for the people of punjab in particular.

Telecom operators said that they have allocated around $4 billion to be invested in Pakistan that will majorly be spent on network expansion and rollout of 3G/4G networks in the country during next three to four years only.

It is pertinent to mention here the Khyber Pakhtoonkhawa and Sindh are still charging 19.5 and 18.5 percent GST on mobile broadband internet DSL,EVO, 3G/4G and WiMax.

Shahbaz Sharif, at the time of withdrawal of internet tax, had urged other provinces to do the same.

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

  • I think telecos didn’t revert packages? Package cost is exact same what is was after implementation of tax :(

  • If KPK had removed the taxes from the internet instead of Punjab, people would have been like “Go Nawaz Go”. Why don’t we say “Go Imran Go” now? The politicians are all the same and Imran Khan is no magician. If people want “change” the people themselves have to thrive for it. Imran Khan or anybody else won’t be bringing any “change”!

  • well, and other provinces are also remove internet taxes, it’s good new for only Punjab user’s and telecos are reduce the internet charge ASAP,
    that’s good step from CM Punjab and CM’s also take removal action, so the masses are very happy if other’s also removed the taxes

    • using telenor 3g. and i confirm they have not removed taxes. today morning i activated telenor day time offer for RS.9.56 . it was Rs. 8 before the taxes

  • yeh kab howa hia aur yeh tax hata dia gya hia k ni how it can be checked i dnt think so

  • This is all topic drama as i talked with Ufone and Mobilink Customer Care that punjab govt reversed the taxes so when will u reveresed the internet rates of punjab they simply said we are not charging any sort of taxes on 3G and rates will not revised.

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