PTA directed to be vigilant of long distance operators
ISLAMABAD: Public Account Committee’s monitoring arm on Wednesday directed the telecommunication regulator “to keep a watch on Long Distance and International (LDI) call operators,” cautioning it about a “scam in making” as receivables of Pakistan Telecommunication Authority (PTA) have already shot up to Rs41 billion.
The implementation and monitoring committee of PAC asked PTA to remain vigilant as LDI operators have indulged in some illegal business. It was referring particularly to two operators — Circle Net and Tri Tel.
“Few LDI operators have been showing continuous losses and we fear loss of more revenues,” said PTA Chairman Dr Mohammad Yaseen. He said LDI operators owe Rs17 billion to PTA on account of various fees and service charges.
The committee expressed its displeasure over PTA’s inability to recover outstanding amount of Rs41 billion from LDI and cellular companies.
The PTA chairman said five LDI operators owed Rs8.8 billion to PTA and their licences had been suspended few days ago. The committee directed the management to negotiate with these companies without compromising on rules.
Yaseen said 4B Gentel International owes Rs992 million, Wise Communication Systems Rs684 million, Worldcall Telecom Rs2.9 billion, Multi Net Rs2.7 billion and Redtone Telecommunications Rs1.6 billion.
Information Technology Secretary Saeed Ahmad Khan told the committee that PTA has asked the ministry to auction cellular licence of Instaphone mobile company to recover outstanding amount of Rs21 billion. He said the ministry was reviewing legal matters as the company has filed a review petition in the Supreme Court of Pakistan.
Khan said despite the petition the matter is not sub judice, as the Supreme Court neither barred the government from taking any action nor provided any relief to the party. He hinted at reaching an out-of-court settlement with Instaphone for the recovery of the amount.
He said the government was not giving due treatment to the telecom industry and instead has made it a source of income. “In Pakistan, tax rates are highest in the South Asian region.” He said in the last financial year the government collected Rs350 billion in taxes from the telecom sector at a rate of 31 per cent.
“The Ministry of Information Technology has met with the finance minister and requested him to review the situation, as the high tax rates are now hurting the sectorÂ’s profitability,” he added.
Source: The Express Tribune
Date:7/7/2011
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