Telecom companies adjusted only Rs 5.9 billion as minimum tax /alternate corporate tax for the Tax Year 2015, revealed the Finance Ministry.
The Ministry affirmed that telecommunication sector is one of the highest tax collecting sectors in terms of Withholding Taxes and has paid Rs 43.082 billion in withholding taxes for the Tax Year 2015.
However, as far as the sector’s own taxes are concerned, telecom companies are declaring losses in their Income tax returns and are paying minimum tax / alternate corporate tax only. Therefore these companies, in their own capacity, cannot be termed as highest taxpayers. For the Tax Year 2015 Minimum tax /alternate corporate tax paid or adjusted by different telecom companies is Rs. 5,994 million.
Sales Tax on telecom services is collected by the Provincial Revenue Authorities in respective provinces whereas Federal Excise Duty is leviable thereon only in Islamabad Capital Territory (ICT).
Further, sales tax on supply of SIMs is also collected from telecom companies.
Following is the collection for the Tax Year 2015 with Sales Tax & FED at Rs. 2,775 million.
The Ministry further stated that double taxation is not being collected or charged by cellular mobile companies: