Government continues tax collection on Mobile Internet

In spite of the repetitive orders from CM of Punjab Mian Muhammad Shahbaz Sharif and Finance Minister Ayesha Ghause, the Punjab Finance Department rejects to stop the Punjab Revenue Authority (PRA) from saving taxes on mobile internet as well as on data roaming.

Certified through PRA, it currently collects 19.5 percent GST on data services more than speed of 2Mps or more than Rs 1,500 connection involving 3G and 4G as well, and will endure to do till an official notification is received from the government of the province.

Though, Dr. Ayesha Ghause had proclaimed that the withdrawal of the mobile internet taxes on floor of House in her budget speed on 12^th June 2015, the PRA claims that it requires an official notification from the government of the Punjab to stop charging and collecting the tax.

The authorities of the PRA, who desired to remain anonymous, have blamed the Punjab Government for being deceitful. They claimed that the provincial government just displayed that it was in favor of eradicating the tax in public however privately have asked the administration to continue imposing it.

The authorities of the mobile operators have also accused the government of the Punjab for being dishonest as well as have recommended it should keep its pledge to the masses and unveil an official notification to stop PRA from gathering the tax.

Tax collection in telecommunication zone has been an elusive and often provocative topic. On one hand, the telecom industry offerings a productive as well as well-documented industry for the government for comparatively convenient collection of taxes, whereas on the other too much pressure of the taxation keeps the sector from extra investing a large ration of its revenue into advancing setup.