Government of Punjab has recently declared tax prices for the internet services over 2Mbps and for bills exceeding Rs. 1,500 per month, starting tomorrow.
With this policy more that 56% population of Pakistan will be liable to pay service taxes on internet usage for 3G, 4G, broadband, EVO or anything internet communication with speeds exceeding 2Mbps or/and if the monthly bill for their service exceeds Rs. 1,500 per month. The government will start implementation on this policy from 29th May 2015.
Here is the details of SRO according to which tax is implemented that was earlier settled to internet services has been withdrawn.
This Tax will Kill The Industry
I feel pity for Anusha Rehman, Ishaq Dar and Nawaz Sharif with their tall claims for efforts that they had made for auctioning 3G and 4G.
Just this morning Anusha Rehman — at an event — wasted more than 30 minutes in explaining how government is supporting 3G/4G and entrepreneurship in the country; the fact is that this government has decided to kill it all.
Observing the revolving high growth rate of internet users in Pakistan, all the appropriate investment, worth billions of dollars, will be retreated to other market and Pakistan will be ordained for the Stone Age again.
Interestingly thus callous decision appeared a week ago before the budget announcement so that Balochistan gets sufficient time to get its sheets right and force similar taxes on internet usage.
Just to have a reminder, KPK and Sindh provinces have already imposed the charges service taxes on internet consumption while tax in both the provinces in conventional internet and use on mobile data. Also tax implementation on all types of internet by Punjab that houses than 56% of Pakistani population is just lethal.
Industry’s Response
Telecom service operators have no words for this development. When it was supposed to manage their record and responses, they were clueless, worries and scattered. An absolute depression has caught up the market as it is aware of the damage tax is going to do to people, country and businesses as well.
One thing is clear to reject this tax. However they are unsure about the source of rejecting it but they have finalized to not to play in the hands of the government.
“They said that Pakistan waited for more than 5 years to launch 3G and 4G, and now when conditions are just about to settle down, this tax is going to take us back to where we had started.”
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.
What to Do Now?
ACT. Respond to this imposed tax by raising your voice, on all the existing platforms so millions of people can get awareness of it. Call the media, TV channels, radio stations and describe your concerns and opinions.
