PTA has recently reported that Government has collected PKR. 119.3 billion from Telecom subscribers and roughly 7 billion from telecom operators which makes it a gross total of PKR. 126.3 billion in the current fiscal year 2014-15 (FY15).

GST was the main part contributing to the taxes with PKR 45.8 billion by the FBR. A considerable amount of PKR. 73.5 billion has been paid by the public for using the telecom services in terms of custom duties, withholding tax and other taxes in FY15.

Government gathered 127 billion Tax from Telecos in 2015.

It has been reported PKR. 7 billion are collected under various domains such as initial and annual license fee, universal service fund (USF) annual spectrum administrative fee, and R&D fund contributions, numbering charges, license application fee to the regulatory and revenue authorities in the period under review. On the contrary, the revenue authorities did not meet its target in the year under review as compared to the previous year’s figures, as the telecom sector’s contributions to the national fund shrank to PKR. 126.3 FY15 as compared to total of PKR. 243.3 in the parallel time frame.

The analysts have estimated that the root cause of decline is revocation of 40 million connections in the last fiscal year following the bio-metric verification, deferral of SIMs’ sales for three month during the bio-metric drive, and the 19% provincial GST by Punjab Government turned out to be negative for FY15.

The Taxes imposed on Pakistani users of cell phone are more than rest of the World. It includes 53% of the overall taxes with 19.5% on call and voice services. Further it has 14% on WHT and now 19.5% on added service, which was levied Punjab government on above 2 Mbps speed.