A parliamentary panel on Wednesday decided to make legislation for giving tax exemption on Rs. 100 cards to those mobile users, who consume Rs. 200 or less mobile balance per month.
This was decided in the Senate Standing committee on Information Technology and Telecommunication which met with Shahi Syed in the chair here on Wednesday.
Parliamentarians expressed serious concerns over 42 percent of taxes including 19.5 percent FED, 12.5 percent WHT and 10 percent service/ maintenance charges on every Rs.100 card.
A mobile user, who recharges Rs. 100 card, is paying Rs. 35.62 in taxes. Further, the user is paying full amount even if the call drops after 10 seconds.
The committee members said that it is not feasible for a person who is even not a filer to claim withholding tax and the government should exempt such poor segment of society from taxes.
The committee decided to introduce a bill in the parliament to propose exemption of these taxes.
Briefing the committee, cellular companies’ representatives said that they are facing very high tax rates and detrimental tax regime for telecom sector as well as consumers.
“There is need for tax harmonization across provinces and federation (rates & criteria). Further harsh and incorrect tax assessment by the authorities are resulting in unnecessary litigation and delay in payment to exchequer”, said the officials of telecom companies.
They further said that tax dispute resolution and rectification is extremely slow and ineffective.
The committee also discussed the issue regarding installation of E-services software at Capital Development Authority (CDA) by M/s LMK Resources Pakistan Ltd.
Federal Investigation Agency (FIA) Deputy Director said that both sides are not serious in implementing the project. The committee directed CDA, M/s LMK Resources Pakistan Ltd and NITB to start work within two weeks and update the committee in next meeting.
Featured Image via Karandaaz