Pakistan News

Pakistan’s Telecom Industry pays highest taxes, Finance Ministry Assures

It has been seen in today’s news that the Telecom industry of Pakistan has been marked as the largest body to collect highest amount of taxes since decades.

The finance Ministry assured that the telecommunication sector collects the highest amount of taxes.  This telecommunication sector has returned Rs 43.082 billion in withholding taxes for the Tax Year 2015.

via : www.pakistantoday.com.pk

Telecom company’s own declaration on income tax  shows that they are facing loss in income tax returns. That is why these companies do not regard themselves as the highest tax payers at all.

The minimum tax adjusted by various telecom companies for the Tax Year 2015 is Rs. 5,994 million.

The taxes of Telecom services are gathered in the respective provinces by the Provincial Revenue Authorities,

Moreover, the taxes on the supply of Mobile Phone SIMs is again gathered from telecom companies.

via: www.phoneworld.com.pk

 

Collection for the Tax Year 2015:

Breakdown of Taxes, Fees, Duties and Levies:

  • Withholding Tax (Income Tax): 14 %
  • Minimum Tax (Income Tax): 1 % of turnover
  • Sales Tax on Supply of Sim: Rs. 250 per Sim
  • FED on Telecom Services: 18.5 %

via: www.dawn.com

All telecommunication companies are taxing withholding income tax of 14% on prepaid and postpaid services u/s 236 of the Income Tax Ordinance, 2001.

Federal Excise Duty @ 18.5 % on telecommunication services is again gathered by telecom companies. This FED @ 18.5% is charged against the balance price on card for the transaction.

 

 

 

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