As Pakistan has announced tax on telecom services by 5 percent from July 1st, 2013, Pakistan Cellular Operators express grave concern over the proposed increase in withholding tax (WHT) by 5.0 percent in the recent meeting with Minister of Information Technology (IT) Anusha Rehmanreports Daily Times, Quoting its sources. The chief executive officers of five mobile companies met recently with Ms Rehman, where they demanded of the government that proposed WHT should not be imposed as it will translate into huge revenue losses for the telecom sector. They further said thattelecom industry was already bearing enough burden of taxes. However, Ms Rehman declined the withdrawal request of WHT proposal by the telecom heads on the pretext that she has no mandate to deal with such matters of tax and duties saying it is the responsibility of the Finance Ministry. All high-ups of telecom operators were disappointed with the approach of the newly elected IT minister as she could not address thoroughly the officials regarding problems of the telecom sector. An official of one of the telecom companies of Pakistan said that increasing Withholding Tax (WHT) is totally an anti-consumer verdict adding that his other adherents of the sector are also absolutely against the proposal because it will hit the consumer and operator both. The imposition of extra 5.0 percent WHT, consumers will get only Rs 58.5 out of Rs 100 top up to use for call time as 19.5 percent Federal Excise Duty (FED), 7.0 percentservice charges, and 15 percent WHT will be deducted at the time of loading card. Also, other industry-related problems were included in the agenda of the meeting together with 3G auction as it remained the centre of talks. Ms Rehman assured the guests that the government will fully cooperate with the telecom sector officials and all concerned matters will be attended appropriately.
Posted on: Sat, 29 Jun 2013 08:47:46 +0000
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