Cell-phone users in Pakistan will soon benefit from significant tax relief as federal cabinet has approved to give ‘industry ‘status to the telecom sector.
According to Ministry of IT and Telecom, cabinet has approved to give status of ‘industry’ to telecom sector in response to recommendations submitted from the ministry.
Syed Amin ul Haq – Federal Minister for Information Technology and Telecommunications has termed the development as a ‘major achievement’ as it will further strengthen the Digital Pakistan initiative with improving connectivity in remote areas across the country.
On recommendations of the Ministry of IT and Telecommunication, the Federal Cabinet has approved to give status of industry to the telecom sector and the gradual reduction of various heavy taxes imposed on the telecom sector and mobile phone users.#MOITT #ICT #Tax pic.twitter.com/3gnnWPrnkT
— Ministry of IT & Telecom (@MoitOfficial) March 12, 2021
As per the press-release issued by Ministry of Ministry of IT and Telecom, advance income tax on cell-phone users will be reduced to 10% from the current 12.5%. Meanwhile, by year 2022-2013 it will be further reduced to 8%.
Furthermore, federal excise duty (FED) on telecommunication services has also been reduced to 16% from the previous 17%, said the federal minister.
