After the withdrawal of Internet taxation in Punjab, the digital publishers of other provinces are demanding the similar leverage on internet taxation. Prominent digital media publishers demanded this withdrawal in a press conference where the asked Chief Minister of KPK to withdraw taxes on internet and mobile data usage in the province to give relief to common man.
KPK encompasses total of 12% of internet users of Pakistan with increasing number of cities where now the 3G/4G services are available. KPK levied 19.5% of internet in 2014. A combined industry letter was written by the CMOs and PTCL to CM KPK earlier in June 2015 which requested the provincial government to obliterate General Sales Tax (GST) on internet and data services.
Telecosin their joint statement said,
“Taxation on Telecom Sector in Pakistan is currently already one of the highest in the world. We believe that imposing additional taxes in the form of GST on data services will not only hamper economic growth in the country but will also adversely impact internet penetration. We strongly believe that it will slow down the growth of 3G and 4G in the country.”
We are looking forward to a positive response by KPK government. We hope that they will withdraw the 19.5% internet tax which is hurdle in the penetration of broadband services. In case, taxes are not removed, it will affect the 3G/4G spectrum option when held by the government.