Pakistan Telecommunication Authority (PTA) is planning to hire tax consultants to propose the most efficient/effective tax model in the telecom sector and revised tax structure on cellular companies.
In this regard, the PTA intended to hire tax consultancy services covering key tasks i.e.
Scope of the tax services includes:
PTA stated that it is mandated to regulate the telecom industry of Pakistan, issue licenses, and create a fair regime in the telecom sector.
Among other things, PTA is also required to collect fees from operators providing telecom service under a license issued by PTA, and the income of the PTA is made taxable through an amendment in the ACT further such authorities were required to be taxed by Finance ACT 2006.
The overall 34.5 percent tax on telecom users including 15 percent advance income tax (AIT) and 19.5 percent GST, Pakistan is among the highest-taxed telecom markets in the world, while it ranks second highest in telecom taxation in South Asia. The exorbitant taxation on telecom services is detrimental to the digitalization drive for the economy.
Understanding the importance of affordability of mobile ownership and the internet in a forward-thinking move geared to push for development in digitization of all aspects of the economy including education, health, commerce, etc, officials told ProPakistani.