PTA to Hire Consultants for Telecom Sector Taxation

The Pakistan Telecommunication Authority (PTA) is planning to hire tax consultants to propose the most efficient/effective tax model in the telecom sector and a revised tax structure for cellular companies. The authority stated that it is mandated to regulate the telecom industry of Pakistan. There is a need to issue licenses and create a fair regime in the telecom sector. In this regard, PTA also highlights the key tasks and scope of the tax services.

In this regard, the PTA intended to hire tax consultancy services covering key tasks

• Tax advice on existing tax structure
• Advice on the PTA’s existing tax structure and contractual arrangements in relation to its position within the telecommunication industry
• Proposing the most tax efficient/effective model for accounting and (iv) tax status of various PTA matters with tax authorities and forums.

PTA to Hire Consultants for Telecom Sector Taxation

Check Also: Why Mobile Users Aren’t Willing to Pay PTA Taxes? A Case Study

Scope of the tax services included

• Preparation and filing of corporate tax return with the Inland Revenue Department, including underlying Income/Sales tax computation on finalisation of accounts and revision of return, if required
• Preparation and filing of refund application for a refund due, if any
• Attendance before tax authorities including the Inland Revenue Department, Appeal authorities and tribunal, and responding to notices issued in connection with corporate/sales tax returns and audit proceedings till finalisation of assessment for income/sales tax or FED
• Assistance in giving tax credits as per Income tax ordinance 2001 and related Sales tax or FED, wherever applicable
• Responding to day-to-day notices and other correspondence with Inland Revenue, and applet authorities concerning items listed above
• Help in interpreting and intimating any changes in income tax, sales tax, federal excise and custom duty laws, if and when required.

PTA is also required to collect fees from operators providing telecom service under a license issued by the PTA. Also, the income of the PTA is taxable through an amendment in the ACT further such authorities were required to be taxed by the finance ACT 2006.

Pakistan is among the highest-taxed telecom markets in the world. The users in Pakistan pay 34.5 per cent tax including 15 per cent advance income tax (AIT) and 19.5 per cent GST.

See Also: Pakistan Mobile Phone Traders Association Visits PTA HQ