PTA Applauded the 5G Developments in Pakistan, also Suggested Reduction in Taxes

Pakistan Telecommunication Authority (PTA) has released PTA annual report 2017. recently. It has stated in the report that Pakistan will emerge as the first nation in South Asia to introduce 5G internet services. PTA Applauded the 5G Developments in Pakistan, also Suggested Reduction in Taxes.

Pakistan would even beat the largest regional nation, India. Because India is also in the run for introducing the most advanced internet service.

PTA Applauded the 5G Developments in Pakistan, also Suggested Reduction in Taxes

According to the PTA’s Annual Report for 2017, Pakistan has started the preparations to test 5G cellular connectivity and it is expected to be launch this 5G technology by 2020.

Almost two months back, the federal cabinet gave permission to cellular companies to test 5G technology in Pakistan. Federal Cabinet let the cellular companies to test within the existing regulatory environment with 0% charging the users. Network and cellular companies are carrying various lab and field to launch the technology as soon as possible.

Due to geo-political importance of Pakistan, Security of Data and Critical Information Infrastructure (CII) is also an important issue. That’s why PTA is preparing guidelines for implementation by the telecom licensees.

It has been also discussed in Pakistan Telecommunication Authority’s report that the withholding tax of 12.5 percent on every mobile recharge is high. As majority of the subscribers fall below the threshold of being a tax payer therefore they cannot get the paid amount adjusted in their annual tax returns.

It is mentioned in PTA’s annual report that high customs duty and other taxes on the import of mobile handsets and telecom equipment, are the major hurdle in the mobile penetration. For the past few years rationalization of taxes in the telecom sector remained a major challenge, which was being faced by the industry.

PTA’s annual report stated that no doubt federal excise duty (FED) has also been decreased to 17 per cent from 18.5 per cent, but it is still high and should be reduced. It is also suggested that the telecom sector should be given the status of the industrial undertaking so that the mobile operators can adjust the income tax paid at the time of import of telecom equipment.

The tremendous efforts of PTA by providing regulatory facilitation to the interested operators will definitely improve the national and international connectivity of the country.

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