Here are Three Main Reasons for Punjab to Impose Tax on Internet

We hinted at this earlier in the morning. Sources have confirmed that the Punjab Government has reportedly held discussions to re-impose taxes (about 19%) on internet usage in the province and they are pretty sure about doing it.

Decision was communicated to Mobile phone operators and ISPs during a meeting in Lahore today that was chaired by Finance Minister Punjab, CFOs of mobile phone companies and ISPs.

Dr. Umar Saif, Chairman of Punjab IT Board, was also part of the meeting.

Punjab government shared the following three reasons for re-imposition of at least 19% GST on internet in the province.

Mobile Phone Companies didn’t Reduce 3G/4G Rates

Punjab government believed that — after it had withdrawn internet tax in the province — mobile phone companies were expected to follow suit and bring down rates for 3G/4G. However, this clearly did not happen and hence, the internet tax withdrawal didn’t mean much for the customer.

Mobile Phone Companies didn’t Invest in Punjab

Punjab government, further to its earlier claim, said that mobile phone companies — unlike they had committed — didn’t invest much in Punjab and that the withdrawal of internet taxes didn’t translate into higher or better internet penetration in the province.

Mobile Phone Companies didn’t Praise Punjab Government for Withdrawing Taxes

Punjab government also showed its concerns by revealing that mobile phone companies didn’t praise Punjab government as much as it should have at the time when the provincial government had withdrawn internet taxes.

ProPakistani sources — who attended today’s meeting — said that they were told that Punjab government has almost decided to impose tax on internet and that a notification for the same will be issued alongside next year’s budget.

They said that Umar Saif was also part of the meeting and that Punjab Government has apparently made up its mind for imposition of GST on internet usage in the province.

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

  • Then apply tax on Mobile Internet, please spare Fiber, DSL, Cable and WiMax from Tax.

  • The first two are very valid reasons, but the last one seems made up by someone. Taxes are policy tools, and when these are reduced for specific activities, it means the government is encouraging the companies to react favorably for the public good, and it seems that this did not happen.

  • WTF does “Mobile Phone Companies didn’t Praise Punjab Government for Withdrawing Taxes” what kind of a badshahiyat is that?

    • It happens. If KPK and Sindh Govts are good even with taxes why Punjab Govt earn less when no body on internet even praise their revenue sacrifice.

  • Please spare the fiber guys. Optix StormFiber Transworld and Nayatel. These have very small numbers and will do all you need. We will do whatever Punjab government want. All companies have reduced price also.

  • First 2 are very valid reasons.
    Like all over Pakistan Ufone users get same benefits against super card like Punjab, and same is the case for other companies hybrid packages. Than where goes tax relief? Punjab users should have got Extra MBs. And for Zong, Jazz and Telenor MBB packages which are same for all provinces. Companies were depositing tax on MBB packages to other provinces and in Punjab who possesses 56% internet users, companies were putting tax amount in their own tummies. Very happy that Punjab Govt has re imposed 19.5% GST on internet services.

    • When the internet tax was applied previously, the telecos did not pass the taxation to customers and they were paying it from their pockets. When the tax was abolished by Punjab govt, since the teleco did not charge for internet tax, therefore nothing was done, and hence no extra MBs. Hope this clarifies.

      • So you are saying that Telcos are still paying taxes from their own pocket in Sindh and KPK on behalf of users? In which world you are living my friend? No body pays for some one here.

        And if Yes, than why not for Punjab users? Why only Punjab Govt have to sacrifice its revenue specially when they can earn more than combine of all other provinces including Federal areas?

      • Since when “GST” started being paid by companies. GST is always forwarded to consumer. No?

        • Bhai, GST gets paid by customer in form of percentage price of the goods. Thus the company is liable to pay it to government. Most big companies do but it isn’t the full amount, there are incentives in place which can drastically reduce or completely waive the amount.

    • Zafar then you pay it and spare us please. We are not as rich as you are and we need equal and free access to Internet you badshahs and Chaudrys get.

      We must not allow this for household over fiber service from which we get service

  • Exactly. Instead of decreasing Zong and Mobilink increased their prices by 500 on 50GB data packages.

  • Ghutnoun k bal zameen pe gir kar naak rigarte hoe baadshah salamat ki tareef nahi ki Telcos ne isliay ab phir lag rha hai tax.

    • We are talking about GST which is already there in sindh and WHT is applicaple all over Pak not in sindh.

  • These silly people are seeing everything from a bureaucratic prism – which is totally wrong. Who will be hot by this tax? the consumer! I wish Umar can pull his weight and get them to listen.

  • whats wrong with you , this is Dar tax not internet tax and at the end the consumer is paying the tax , not the companies

  • then tax the companies…….why are you punishing the public already buried under your taxes?….

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