Punjab Govt’s U-turn will impose mobile internet tax

Punjab government has decided to impose 19.5% tax on mobile data usage accross the province, the fact is they already promised everyone that a taxes on internet has be withdrawn. If the report published on “The News” is true then a notification will be sent for informing users about 19.5% tax on mobile data usage.

A source at Pakistan Revenue Authority confirmed that a revised SRO will be issued soon, hinting that PRA has taken a U-Turn and that it is now planning to tax mobile data usage. However, DSL users might be exempted from the taxes.

It may be recalled that Punjab Government had imposed 19.5% tax on internet services through an SRO on May 28th, 2015. Later on after protest from various stakeholders, Dr Ayesha Ghaus, Finance Minister Punjab, during her budget speech on June 13th, 2015 announced the reversal of Internet taxes and said that notification will be taken back shortly.

Punjab government has clearly taken a U-Turn on internet taxes

Dr. Ayesha, in her speech, had said that decision for reversal of internet taxes came after provincial cabinet’s approval.

Despite promises from Finance Minister, notification for reversal of taxes was never issued and PRA kept issuing verbal assurances even when cellular companies asked it for clarification on the issue.

Now, after almost two months of this whole ambiguous situation, Punjab government is looking to tax mobile data usage again. To save its face, PRA plans to exempt DSL users from internet tax which are less than 2 percent in the whole province.

This is clearly a U-Turn that Punjab government has taken from its earlier stance.

There is another 14% withholding tax imposed by the federal government which will be collected by federal government in addition to this 19.5% tax imposed by Provinces.

Kya ye khula tazad ni hai?

The total 33.5% tax internet users will have to pay, well it not a good decision cellular companies will loose many of their customers and government will loose the believe of peoples, ultimately its bad for out country.