The telecommunications sector’s contribution to the national kitty has continued to grow as it paid Rs56.3 billion in taxes, duties and regulatory charges in the first half (July-December) of financial year 2010-11 compared to Rs49 billion in the same period last year, showing an increase of 15 per cent, says the Pakistan Telecommunication Authority (PTA).
In 2009-10, the telecom sector contributed Rs109.05 billion in taxes – around 50 per cent came in the form of general sales tax – with the telecom watchdog PTA contributing Rs13.56 billion.
“It is expected that by the end of FY11, total contribution [of the telecom sector] to the national exchequer will be higher than last year’s contribution,” the PTA said on Thursday while quoting its report on the performance of telecom sector in the country.
“In contrast to Pakistan’s economic situation, the growth of the telecom sector has remained healthy and positive,” it said.
In the first half of FY11, total GST collection from the sector stood at Rs23 billion compared to Rs21 billion in the same period last year. GST comes mainly from the mobile sector and its share in total GST collection is 86 per cent, followed by basic services at 11 per cent.
The telecom industry paid Rs3 billion in activation tax in the period under review, which was lower than Rs4 billion in the same period last year.
Published in The Express Tribune, June 3rd, 2011.
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