The Sindh Government has withdrawn a sales tax exemption on internet, which was being offered to users who had bills with amounts less than Rs. 2,500 or had internet speeds below 4Mbps.
With this decision, all DSL, FTTH, 3G, 4G, cable and any other internet service will be charged at 19.5% higher rates in the province starting July 1st, 2019.
Earlier there was an exemption in sales tax for internet users, mainly to support students and those who had lower speeds.
Official notice sent to all ISPs said that all internet and broadband customers, irrespective of their speed or charges, will pay sales tax at the statutory rate of 19.5 percent. It said that taxes will be applicable from July 1st, 2019.
According to officials, sales tax on internet and broadband services had already been imposed in Punjab, Khyber Pakhtunkhwa, and Balochistan at the rate of 19.5 percent and the same rate was applied in Sindh.
Minister for IT Condemns the Move
Soon after the Sindh provincial government’s decision of imposing sales tax on internet services was official, Federal Minister for Information Technology and Telecommunication, Dr. Khalid Maqbool Siddiqui, condemned the move.
Terming the decision as the victimization of youth, the Federal Minister for IT said that that “youth are the major segment of our society and this decision of Sindh government will impact our youth, especially students”.
He asked the Sindh government to withdraw its decision of imposing 19.5 percent sales tax on internet and broadband services.
Ironically, the Federal Government itself withdrew exemption of FED on internet services and foreign satellite bandwidth service in the Finance Bill 2019-20.
Telecom services provided in Islamabad Capital Territory are subject to FED which was exempted prior to July 1, 2019. Furthermore, bandwidth services were also exempted from FED.
Message from PTI Government to the people of Pakistan is: don’t use the internet. Live in the dark ages. Digital economy is not a priority. Just manufacturing export is a priority. Kidhar gay China seh compete karnay manufacturing meh. Bangladesh seh compete karlo, bari baat hogi.
Let there be no doubt PPP and PMLN were as bad, the PTI is just putting final nail in coffin!
PM please wake up. If India IT exports can touch 100Bn USD, Pakistan can achieve atleast 50BN
Bhai Sindh mein PTI ki govt nhe… PPP ruler party ha…
Not to be rude but how do you explain this, “According to officials, sales tax on internet and broadband services had already been imposed in Punjab, Khyber Pakhtunkhwa, and Balochistan at the rate of 19.5 percent and the same rate was applied in Sindh.”?
I also wanted to comment the same,,, the IT minister was silent before, only when imposed in Sindh, he wakes up !!!!!
Read Again the second last paragraph
“Federal Government itself withdrew exemption of FED on internet services”
Tumhari soch ko salam
Gadhay hukamraan ! Internet pr tax kis chez ka le rhe hn ? internet tax ka paisa google ki search resulting tez krne me lagayen gy ? Kia service denge internet pr tax ke paisa se ?
it has already been imposed in KP since June 2018
The article mentions “Federal Minister for Information Technology and Telecommunication, Dr. Khalid Maqbool Siddiqui”
I thought he had been changed quite a while back – is this old news?
Mera 1200 Ka Bill Ab Hoga 1434 Ka :
DO Din Se Net Band hai Wifi Aur Mobile Data Main Speed Bhi Achi Nahi
Plz tell me 1mb net pr b tax hy?
G Bhai Sub Pe Hai
Too much poverty and too much taxes imposing.. govt should kill at once this nation,
My internet provider asking me to increase 32% tax 19.5 sales tax and 12.5 withholding tax
Is he getting correct amount or fooling me please guide
My internet provider also doing same..
I don’t know why..
my internet provider also asked me for 32% tax.
Imran Khan ko doob marna chahie..
Internet pe tax ?? Had h yar..
Meri samjh se to bahar h..