GSMA Asks Govt to Reverse Tax Hike on Telecom Services
It said the telecommunication sector was a key enabler for social and economic growth and Pakistan’s mobile market has significant potential, but current levels of mobile internet adoption, smartphone take-up and usage of digital services lag behind those of other countries in the region. See Also: Ministry of Information Technology and Telecommunication Launches Pakistan’s First Free Studio for Digital Media The government had announced to reduce WHT from 12.5pc to 10pc in the federal budget 2021-22 and further to 8pc in the next fiscal year. The GSMA has said that removing this withholding tax would promote accessibility to connectivity to the low-income group.
GSMA has commended Pakistan’s tax reform measures that were approved in the budget 2021-22.
It said that Pakistan has the widest gender gap of 34pc in mobile ownership and 43pc for mobile internet use as compared to the regional countries. Sector-specific taxes, such as those on smartphones and data usage, influence retail prices and may have a strong impact on the poorest consumers, especially women, lessening their ability to become mobile broadband subscribers. Connectivity has never been more important as the pandemic has highlighted its need and will continue to be even more essential moving forward, it observed. “Due to its negative impact this increased tax levy presents a significant risk of the government achieving the Digital Pakistan vision,” the letter said. Check Also: MoiTT Proposes a ‘National Disaster Telecommunications Plan’ to Cope up with Emergencies Source: Dawn News
