After tax imposition rumors on mobile imports, another sector growing sector will soon face taxation from Punjab Government. 19.5% tax has been imposed on internet services over 2Mbps and for bills exceeding Rs. 1,500 per month.

The decision has been implemented starting from May 29th, 2015.The government took striking initiatives for the auctioning of 3G/4G in Pakistan and is now trying to kill the whole of it by levying heavy taxes. The billion dollar investment that can generate stellar results in rapidly growing market will get wasted and could be destined for the Stone Age again. Balochistan has still not made any call for tax imposition, meanwhile, KPK and Sindh provinces are already charging service taxes on conventional internet usage and not on mobile data. This imposition may prove extremely lethal as Punjab comprises of 56% of population and carries huge growth potential for 3G/4G.

Telecom service providers are speechless over this announcement and has raised serious concerns and consequences as the businesses may implode and will ruin what has been started after 5-year efforts.

One official of a telecom company commented:

“It is such a shame that politicians, who prefer their personal pockets over national economy, are such short sighted that they preferred killing the internet industry, eCommerce, m-banking, entrepreneurship and almost entire economy for meeting budgetary deficits.”

Another top level official, said:

“This tax has shocked the industry. Telecom companies didn’t invest more than $1.5 billion dollars in Pakistan for 3G and 4G just to face 20% tax on internet.”