One can only hope that the government wakes up from its slumber and ends unfair taxation on telecommunication services
KARACHI: I would like to bring to attention the issue of increased taxation on mobile and broadband services by the government. The increase is making it costlier for the end user to benefit from the digital revolution in Pakistan.
As a user, I am enticed towards making use of cellular services that are now available to me but the increasing cost of usage makes me reluctant. For example, if I load a prepaid mobile phone card worth Rs100, the immediate and usage-linked deductions in the form of various taxes, such as withholding tax and general sales tax, amount to Rs36, which is ridiculous.
A recent report by the State Bank of Pakistan also stated that Pakistanis are paying very high taxes on telecommunication services as compared to other countries. In such a scenario, how does the government expect to bring digital and cellular connectivity to the common man?
A quick Google search reveals that more than 80 per cent of Pakistan’s population is offline despite the country being ranked among the top 10 in terms of mobile users. Making mobile internet available in the country is not necessarily going to get more people online.
These services need to be affordable in order to bring any benefit to consumers. What is even more unsettling is the government’s silence in this regard as it seems least bothered about bringing any real social benefit to the lives of citizens. Indeed, the benefits of having more users online are many, including greater access to information, especially for students. One can only hope that the government wakes up from its slumber and ends unfair taxation on telecommunication services.
Syed Aqeel Ahmed
Published in The Express Tribune, January 31st, 2016.
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