On Wednesday a parliamentary panel formed a legislation for providing tax exclusion on rupees hundred mobile cards to all those mobile phone users who use rupees two hundred or less mobile balance each month.
On Wednesday during a meeting session of the Senate Standing Committee on Information Technology and Telecommunication with Shahi Syed this decision was taken.
Parliamentarians showed their concern on the forty-two percent of taxes which includes 19.5 percent GST, 12.5 percent income tax and ten percent maintenance/ service charges on every recharge of rupees hundred cards.
A mobile phone user, who loads a card of rupees hundred, is paying rupees 35.62 in taxes. Additionally, the consumer who recharges a hundred rupees card is paying full amount even if the call drops just after ten seconds.
The committee members suggested that it is not convenient for people who are not even filers to claim their withholding tax amount, so the government should exclude this segment of society from taxes.
The committee agreed on proposing a bill to the parliament for proposing an exclusion of these taxes.
While providing the details to the committee the telecommunication companies representatives said that they are themselves facing high tax rates and detrimental tax regime for the telecom sector as well as their consumers.
The officials of the telecom companies mentioned that there is a need for tax harmonization and federation. They added that more taxes and incorrect tax evaluation by the authorities leads to pointless trial and delays in the cost to the exchequer.
The committee also mentioned about the difficulty relating the establishment of the E-service software program at the Capital Improvement Authority (CDA) by M/s LMK Resources Pakistan Ltd.
The FIA (federal Investigation Agency) Deputy Director informed that both parties are showing no serious interest in the implementation of the project.
The committee instructed the CDA, M/s LMK Resources Ltd. and NITB for starting the work within two weeks’ time and to update the committee in the next meeting.