Jazz & Telenor Clarify Tax Position: No Adverse Judgement, Committed to Lawful Compliance
Two telecom firms have decided to pay Rs26 billion in outstanding taxes to the Federal Board of Revenue (FBR). They made this choice after losing their case in the Islamabad High Court (IHC) and chose not to continue with more legal action.
The Large Taxpayer Office (LTO) in Islamabad had planned to freeze these companies’ bank accounts. This was to ensure tax recovery before any appeal could be filed. The LTO even operated on Saturday to carry out this action against Telenor Pakistan and Deodar Pakistan, a Jazz subsidiary.
The FBR began the recovery process after the government issued the Tax Laws (Amendment) Ordinance 2025. As part of this process, the FBR prepared to freeze the bank accounts of both firms. This is because their head offices are located in Islamabad, placing them under LTO’s jurisdiction.
Both companies had challenged the tax demand related to equipment imports. But late Saturday, they reached a settlement with the FBR. They agreed to pay the required taxes as per the court order.
Telenor Pakistan recently lost a case involving Rs6 billion in withholding tax. When the FBR moved to freeze its accounts, Telenor agreed to pay the amount instead of pursuing more court action.
Similarly, Deodar Pakistan lost a case over Rs20 billion in withholding tax. The company agreed to pay the amount for equipment imports. Jazz management confirmed they will not take the matter back to court.
Deodar handles telecom towers and cell site operations for Jazz. Although Jazz has agreed to sell Deodar to Engro Corporation for about $563 million, the deal is still pending due to legal formalities. The Competition Commission of Pakistan has approved the transaction.
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Jazz & Telenor Clarify Tax Position with Official Statements:
In response to the news story, Jazz issued a statement stating:
“It is clarified that neither PMCL nor its wholly owned subsidiary, Deodar, has received any adverse judgement in court, contrary to what was reported. As one of the highest tax-paying businesses in the country, PMCL has consistently fulfilled its obligations in accordance with the law. PMCL remains committed to compliance with applicable laws for all transactions, as and when required — always within the framework of the law and without compromising the rights and guarantees available under the Constitution of Pakistan.”
Telenor also responded with a separate statement:
“Telenor Pakistan, as a law-abiding corporate entity and one of the largest contributors to the national exchequer, remains committed to complying with all applicable laws and regulations. We believe in resolving tax-related matters through due process and continue to engage constructively with the relevant authorities. While discussions with the FBR are ongoing related to the tax demand, it is important to clarify that we reserve our right to pursue appropriate legal remedies as necessary.”
