Competition Commission: Commission not relevant to call rates says govt
DAG says tax is on people abroad, CCP concerned only with Pakistan.
LAHORE:
The government does not need permission from the Competition Commission of Pakistan (CCP) to levy an additional tax on incoming international calls, even though the commission has declared it anti-competitive, a deputy attorney general argued before the Lahore High Court on Monday.
Justice Ijazul Ahsan had suspended the imposition of the tax, which raised international incoming call rates by up to 400 per cent, at the last hearing on October 25. Lahore-based local loop operator Brain Telecommunications has challenged the tax, arguing that it is against competitive practices.
Deputy Attorney General Nasim Kashmiri appeared before the court on Monday on behalf of the federal government, Ministry of Information Technology (MoIT), Pakistan Telecommunication Authority (PTA) and Pakistan Telecommunications Limited (PTCL).
He said that setting call rates was the prerogative of the PTA and it had done so in accordance with the law. The government did not require the CCP’s permission as it was only concerned with matters which took place inside Pakistan, while in this case the tax only affected people outside Pakistan. He asked the court to dismiss the petition.
Counsel for the petitioner Barrister Umar said the imposition of the tax on incoming calls was a clear violation of competition rules. He said that the MoIT had issued a policy directive asking the PTA to execute an agreement with 14 long distance and international (LDI) operators to set up an international clearing house (ICH).
The PTA acted upon the ‘instructions’ and established an ICH for LDI operators with effect from October 01. The counsel said that the tax had raised the cost of calling Pakistan 3 to 4 times, hurting many overseas Pakistanis.
He pointed out that the Competition Commission had issued a dissenting note to the MoIT and PTA suggesting that it withdraw its decision to establish an ICH exchange. He said the decision also violated the Competition Act of 2010.
The court directed the counsels to present their final arguments at the next hearing on November 14. The suspension of the tax was also extended till that date.
Published in The Express Tribune, November 6th, 2012.
The government does not need permission from the Competition Commission of Pakistan (CCP) to levy an additional tax on incoming international calls, even though the commission has declared it anti-competitive, a deputy attorney general argued before the Lahore High Court on Monday.
Justice Ijazul Ahsan had suspended the imposition of the tax, which raised international incoming call rates by up to 400 per cent, at the last hearing on October 25. Lahore-based local loop operator Brain Telecommunications has challenged the tax, arguing that it is against competitive practices.
Deputy Attorney General Nasim Kashmiri appeared before the court on Monday on behalf of the federal government, Ministry of Information Technology (MoIT), Pakistan Telecommunication Authority (PTA) and Pakistan Telecommunications Limited (PTCL).
He said that setting call rates was the prerogative of the PTA and it had done so in accordance with the law. The government did not require the CCP’s permission as it was only concerned with matters which took place inside Pakistan, while in this case the tax only affected people outside Pakistan. He asked the court to dismiss the petition.
Counsel for the petitioner Barrister Umar said the imposition of the tax on incoming calls was a clear violation of competition rules. He said that the MoIT had issued a policy directive asking the PTA to execute an agreement with 14 long distance and international (LDI) operators to set up an international clearing house (ICH).
The PTA acted upon the ‘instructions’ and established an ICH for LDI operators with effect from October 01. The counsel said that the tax had raised the cost of calling Pakistan 3 to 4 times, hurting many overseas Pakistanis.
He pointed out that the Competition Commission had issued a dissenting note to the MoIT and PTA suggesting that it withdraw its decision to establish an ICH exchange. He said the decision also violated the Competition Act of 2010.
The court directed the counsels to present their final arguments at the next hearing on November 14. The suspension of the tax was also extended till that date.
Published in The Express Tribune, November 6th, 2012.