Prime Minister Imran Khan and the Cabinet opposed the imposition of tax on mobile phone calls, SMS and internet data. Finance Minister Shaukat Tarin has now announced that there will be no increase in the tax rate for all these services. Just now, the government has unveiled the budget for fiscal year 2021-22, with the outlay kept at Rs8,478 billion and the tax target set at an ambitious Rs5,829 billion.
Govt Abolishes the Increase in the Tax rate of Mobile Phone Calls, SMS & internet in Budget 2021-22
“We have to earn dollars by increasing exports and add an additional tax of Rs500 billion in the next financial year,” he said.
No doubts, the latest budget has brought a lot of grants and tax reduction for different sectors. Pakistan’s IT sector is going to be more profitable after this budget as lots of taxation has been reduced.
The income tax on the users of mobile phones is reduced from 12.5% to 10% for 2021-2022 and will be reduced further to 8% in 2022-2023. Similarly, telecom excise duty is lessened by 1% as it comes down from 17% to 16%. Also, the payment of Rs 250 on SIM issuance is also abolished with exception of withholding taxes. For telecom companies having PTA licenses, the withholding tax on the services is lessened to 3% from 8%.
For More Information Please Check: Pakistan’s Budget 2020-2021 Gears towards Development in the IT industry