Mobile operators have indicated grave concern over the suggested improve in withholding tax (WHT) by 5.0 % in the latest conference with Minister of Information Technology (IT) Anusha Rehman, industry sources told Daily Times on Thursday.
The chief executive officers of five mobile companies met lately with Ms Rehman, where they required of the govt that suggested WHT should not be enforced as it will convert into large income failures for the telecom market. They further said that telecom market was already keeping enough pressure of taxation.
However, Ms Rehman dropped the drawback demand of WHT offer by the telecommunications leads on the pretext that she has no require to cope with such issues of tax and responsibilities saying it is the liability of the Fund Ministry.
Sources further said that all high-ups of telecommunications providers were frustrated with the strategy of the lately chosen IT minister as she could not cope with thoroughly the authorities regarding issues of the telecommunications market.
An official of one of the telecom companies of Pakistan said that increasing WHT is totally an anti-consumer verdict adding that his other adherents of the sector are also absolutely against the proposal because it will hit the consumer and operator both.
He mentioned that after the imposition of extra 5.0 percent WHT, consumers will get only Rs 58.5 out of Rs 100 top up to use for call time as 19.5 percent Federal Excise Duty (FED), 7.0 percent service charges, and 15 percent WHT will be deducted at the time of loading card.According to an official statement issued by the Ministry of IT, the minister discussed with the CEOs the challenges faced by the IT companies and also discussed the opportunities to help in expanding IT services in Pakistan. It was decided in the meeting to constitute two committees, which would solve the challenges faced by the IT sector.
As last government could not perform the 3G auction due to its negligence as less coordination among all regulators of the telecom sector made the execution of auction difficult, similarly, the fresh government is doing the same, although the new IT minister has recharged the 3G subject in media by claiming that it will be held within three to four months but looking at the performance of the current government regarding the auction, it gives the impression that it is not possible to take place this year, said the sources.
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