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Mobile phone users to pay lower advance income tax in Pakistan

MM News Staff by MM News Staff
March 15, 2021
File/Photo

File/Photo

ISLAMABAD: The tax imposed on mobile phone users will gradually reduce after the federal cabinet approved granting the telecom sector the status of an industry.

According to a tweet from the ministry, the federal cabinet’s approval came on the recommendations of the Ministry of IT and Telecommunication. There would be a gradual reduction of taxes imposed on the telecom sector and mobile phone users, the ministry said.

On recommendations of the Ministry of IT and Telecommunication, the Federal Cabinet has approved to give status of industry to the telecom sector and the gradual reduction of various heavy taxes imposed on the telecom sector and mobile phone users.#MOITT #ICT #Tax pic.twitter.com/3gnnWPrnkT

— Ministry of IT & Telecom (@MoitOfficial) March 12, 2021

Federal Minister for Information Technology and Telecommunication Syed Amin ul Haque said “This is a major achievement that will directly benefit not only mobile phone users but will also help spread the spirit of digital Pakistan (connectivity) to remote areas of the country.”

Haque informed from the next financial year (2021-22), advance income tax on mobile phone users will be reduced from 12.5% to 10% and in the financial year 2022-23, it will go further down to 8%. Likewise, the federal excise duty (FED) on telecommunication services has been reduced from 17% to 16%, the minister noted.

Haque said the government is planning on reducing the 6% excise duty along with tax reduction on various services. “Rs250 charges on sim purchase have been withdrawn, and this will be beneficial for the public.”

Information and Communication Technology (ICT) export remittances — including export of telecommunication, computer, and information services — surged to $958 million at a growth rate of 40% during July-December in the current fiscal year of 2020-21, in comparison to $684 million during the same period last year, he added.

ڈیجیٹل پاکستان: اب خواب نہیں تعبیر

حکومت کا ٹیلی کام سیکٹر کو انڈسٹری کا درجہ دینے کا فیصلہ جس سے ٹیلی کام سیکٹر اور موبائل فون صارفین پر عائد مختلف بھاری ٹیکسوں میں بتدریج کمی ہوگی اور ملک میں ٹیکنالوجی کے فروغ کی فضا پیدا ہوگی۔ pic.twitter.com/04gF4UvJLy

— Government of Pakistan (@GovtofPakistan) March 13, 2021

Tags: MM News MM TVMobile phone users to pay lower advance income tax in Pakistan
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