IHC Reserves Judgment on Telenor’s Petition Against WHT on Spectrum Fee

Islamabad High Court today reserved its decision on Telenor’s petition against 10 percent withholding tax on spectrum fee.

Court was today explained by counsels of Telenor Pakistan, FBR and Pakistan Telecommunication Authority.

Telenor Pakistan was contending that deduction of withholding tax at 10 percent of the gross sale price of spectrum auction is unlawful, baseless and based on a gross misinterpretation of the said provision without jurisdiction.

More details on Telenor’s petition can be viewed here.

It must be recalled that PTA is not issuing license to Telenor for 850MHz spectrum — that Telenor was declared as winner earlier this month — despite paying half price of spectrum fee in advance and while remaining fee will be paid in five equal annual installments along with cumulative mark-up @ LIBOR + 3% from effective date of license to date of payment.

PTA is contesting that Telenor Pakistan must pay 10% WHT — i.e. $39.5 million — to obtain the license.

It must be noted that all operators had paid 10% withholding tax at the time of previous auction. Similarly Information Memorandum for recent auction had clear mention of 10% withholding tax as well.

Despite all this, Telenor, exercised its right of moving court on a matter that it thought was illegal imposition of tax.

Islamabad High Court, while reserving the judgment, concluded the hearing and said that it will issue a decision during next hearing.

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

  • Usama Ahmed

    Why only Telenor decided to go inside court. Are the other Telecom companies fine with WHT?

    • aamir7

      It’s on spectrum fee that Telenor won recently

      • Usama Ahmed

        Ah i see, so its only with Telenor. Thanks for the clarification.

      • Aon Bilal

        Aamir Bhai
        Crush Damper 22000 Se 50000 Ka Ho Gia Ha Margalla Par Pabandi Ki Waja Se or Cement Bag Ki Price 475 Se 540 Ho Gai Ha Chand Dino Main Is Par Bhi Kuch Awaz Uthain

        • Siddique

          Amir bhai is not a mistriiii i thin

      • Fakhruddin Ahmed

        any updates of Mobilink Warid Marge ???

        • Aon Bilal

          Telenor 4g Launch Se Pehly Kuch Nahi Ho Ga

  • Zafar Abbas Rizvi

    Dear aamir when is the next hearing?

  • Muhammad Faheem

    mobilink warid merger ki updates bhi den aamir bhai

  • Naveed

    any update on Mobilink-Warid merger? its already long time :)

  • bilal

    whats the decree/decision?

  • Muhammad Shoaib

    Bhai kuch khabar mili Telenor 4G ki ? Kay mamla kidhar latka howa hai ..