SIM re-verification: To ease burden on telcos, govt agrees to tax rebates

Govt to waive sales tax on sale of new SIM cards, lower verification charges by over 50% from Jan 12 to Feb 28


Shahbaz Rana January 06, 2015
NADRA would charge only Rs 10 for verification of each SIM card, down from earlier high of Rs23. STOCK IMAGE

ISLAMABAD: In its bid to convince telecom companies to shut all unverified SIMs, the government on Tuesday agreed to waive sales tax on new SIM cards and lower verification charges by over 50 per cent for a short period.

The decision was taken to lessen the financial burden on telcos who face increased charges for screening as many as 103 million SIM cards and potential loss of revenue from blocking unverified SIMs as part of the government's National Action Plan.

According to an announcement, Finance Minister Ishaq Dar has , in principle, agreed to waive sales tax on replacement of SIMs, charged by the Federal Board of Revenue, from January 12 to February 28, 2015, provided that a proper definition of “a replacement of SIM” is arrived at.

It was also agreed that NADRA would charge only Rs10 for verifying each SIM card, down from regular fees of Rs23. The meeting also deliberated at length on making stringent measures for provision of security to telcos.

The decisions were taken during a meeting regarding re-verification of mobile phone SIMs in the country with particular focus on fiscal aspects of the issues faced by the telecom sector. Finance Minister Ishaq Dar, Minister of State for Information Technology Anusha Rehman, representatives of mobile phone operators and officials of Pakistan Telecommunication Authority, Ministry of IT, Ministry of Finance and Ministry of Interior were present in the meeting.

Apprising the meeting of the difficulties telcos face in the re-verification process, representatives of various mobile phone companies presented their proposals seeking concessions in mandatory taxes and charges paid to FBR and NADRA on issuance of SIMs under existing laws.

Telco representatives further sought legal cover against the plausible litigation from customers whose SIMs would be blocked under the plan. On this, Ministry of IT was assigned the task of formulating concrete proposals to address the issue.

They further suggested proposals for offsetting the financial losses which will be incurred by blocking unverified SIMs, including reduction in the overall taxes on the industry from 19.5 per cent to 17 per cent.

On this occasion, telecom operators and other participants of the meeting shared their views on the time limit for re-verification process. Further discussions will be held in this regard on Wednesday.

Rehman said that apart from fiscal issues, the telecom sector also needs facilitation in other areas which should be accorded due consideration.

Earlier, the meeting was informed that re-verification of 103 million SIMs will be carried out in multiple phases. Subscribers have been divided in two categories for re-verification, while a media campaign and SMS broadcast will be carried out asking customers to get their SIMs re-verified.

COMMENTS (2)

Muzammil Hussain | 9 years ago | Reply

Re-verifying does not seem to be a good idea. Terrorist are more technically advanced and also found using complex exchange system to route calls between different network. Re-verifying Sims cannot help to curb communication technology use, instead it will just increase inconvenience to the public.

Mohammad Ali Siddiqui | 9 years ago | Reply

It's is only happening in Pakistan that first SIM Cards were issued in millions and after uncounted people have died due to terrorist activities through unverified SIM Cards, now the SIM's are being verified by Telecons Companies to undo the wrong.

The process would suppose to be that not a single SIM Card should have been issued in Pakistan to any one by Telecons Companies until and unless the persons should have been screened out properly right from the first day when Mobile Technology was introduced in Pakistan.

There are similar other examples of our hard working and honest government servants where they have tried to put the cart before the horse.

The onus lies only and only on PTA which is regulating authority of telecommunications in Pakistan.

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