Taxes on mobile phone service to generate Rs 35b
ISLAMABAD, June 10 2006: Taxes on mobile phone service including the general sales tax at the rate of 15 per cent and activation charge Rs 500 on each new connection are likely to generate revenue to the tune of Rs 35 billion from July 2005 to June 30 2006 with the break-up of Rs 25 billion GST and Rs 10 billion from the activation charge.
According to officials, the tax revenue from the telecom sector in coming year is projected to register handsome growth despite the fact that the overall tax structure as well as rates has not been changed in the budget 2006-2007. It is projected in the next fiscal year starting from July I, 2006, the sales in telecom sector especially in the mobile sub-sector would increase manifold thus realizing corresponding increase in tax collection thereon. Other than the projected robust growth in the existing set up the opening up of Azad Jammu and Kashmir would also contribute sizeable sales tax revenue, they added.
The officials told The Nation that the Central Board of Revenue is conservatively estimating to collect Rs \00 billion if not more from the overall Information Technology and Telecom Industry during the coming financial year. The CBR however remained unmoved over the suggestion of the Pakistan Telecom Authority to do away with Rs 500 technology activation charge on the each new mobile phone connection. Still, the officials have estimated that the activation charge alone in coming year would generate Rs 25 billion with possible registration of ISO per cent increase as compared to the year ending June 30, 2006.
Although the government has not slapped the telecom and IT services including computer software and hardware as demanded by the industry and recommended by the PTA, it has brought burglar alarm service and vehicle trackers under the GST net. With the growth in vehicles’ sale throughout the country and the private security services fast growing, these two areas are likely to generate Rs 5 to Rs 10 billion through the 15 per cent excise duty levied on these two sectors, the officials added.
Source: The Nation
Date:6/10/2006
” 
” 
” 
” 
” 
