Relief: Govt waives sales tax on new SIM cards

The decision was taken to lessen fiscal burden of telecom firms

Shahbaz Rana January 07, 2015

The decision was taken to lessen fiscal burden of telecom firms. PHOTO: AFP

ISLAMABAD: The government on Tuesday agreed to waive off sales tax on new SIM cards and lowered verification charges to Rs10.

The decisions were taken to lessen the financial burden of telecommunication firms that have been directed to screen all unverified SIM cards as part of the ongoing drive against terrorism in the country.

According to an official announcement, Finance Minister Ishaq Dar agreed in principle on waiver of sales tax on replacement of SIMs during the period from 12th January to 28th February, 2015.

It further stated that National Database and Registration Authority (NADRA) would charge only Rs10 for verification of each SIM card, down from Rs23. The meeting also deliberated at length on taking stringent measures for provision of security to telcos. The decisions were taken during a meeting between the finance minister, Minister of State for Information Technology, Anusha Rehman, mobile phone operators and Pakistan Telecommunication Authority.

Representatives of various mobile phone companies apprised participants of the meeting about the challenges they were facing regarding the re-verifications process which is part of the National Action Plan aimed at eliminating terrorism. They presented proposals seeking concessions in taxes and charges paid to FBR and NADRA on issuance of SIMs as mandatory under the relevant laws.

The representatives also put forth proposals regarding improvement of the telecom industry which included reduction in the overall taxes from 19.5% to 17% in anticipation of plummeting revenue due to blockage of SIMs. They also requested for provision of legal cover to guard against litigation from customers due to possible blockage of unauthorized SIMs.

Tuesday’s meeting concluded with the resolve that all stakeholders would contribute for the re-verification process of SIMs for the success of the National Action Plan.

Published in The Express Tribune, January 7^th, 2014.