Telecoms in Punjab are likely to incur losses due to an unclear disposition of taxes on mobile internet. There is still an ambiguous directive of 19.5% general sales tax on internet services according to sources.
Punjab government first imposed taxes up to 19.5% on May 28, 2015. Then it also lifted the imposition during the budget speech by Dr Ayesha Ghaus, Finance Minister Punjab on the floor of the provincial house. However, an official notification is still necessary to officially nullify the SRO submitted to May 28, 2015.
It is therefore necessary for Cellular companies to submit returns for 21st of every month according to chief of cellular companies which they haven’t collected for customers due to the announcement by Finance Minister Punjab. This means they have to bear the loss by giving away tax money from their pockets as no official notification comes.
While on the other hand Ayesha Ghaus said no one should be worried about the tax as cabinet has withdrawn the 19.5% taxes on data usage on mobile. A similar response was made by PRA Chief Dr. Raheel Siddique. However, both the officials didn’t clarify that when revocation orders for internet taxes will be issued. In case of ambiguity, he advised that the Telecos should contact PRA, but did not comment on when the first SRO will be officially revoked.