Punjab Government Imposed 19.5 Percent Tax on Internet . The arrival of 3G & 4G in Pakistan has contributed a lot in connecting people and increased the internet penetration from 3% to 15% just in short period of 1 year. However Punjab has total 60% of Pakistan’s economy but out of utter surprise internet penetration is still as low as 15%. Punjab Government, instead of making internet accessible to more people, has imposed 19.5% sales Tax on DSL, 3G and 4G, making it more expensive.
Punjab Government Imposed 19.5 Percent Tax on Internet
Imposition of 19.5% Tax on internet will harm the growth of internet penetration in Punjab which in turn will damage the economic activities which solely depends on internet availability.
The expensive internet will also effect the 3G/4G roll out plans which will adversely effect the availability of telecom services in remote areas. 14% of tax is already deducted fro internet services across Pakistan.
The number of mobile phone subscribers in Pakistan has shown a gradual and sustained increase. It is expected that new imposed Tax will definitely cut down internet users which will effect Pakistan’s economy.
New taxes will be applicable from July 1st, 2017. Students in Punjab, who will use Internet services below Rs. 1,500 per month will enjoy tax free internet.
This high amount of taxation will also afflict penalize users who are already generating low Average Revenue per users as compared to neighboring countries.