ISLAMABAD: Global System for Mobile Associations (GSMA) has expressed concerns over the rise in withholding tax on telecom services in the mini-budget.
GSMA has written a letter to the Minister of Finance, Chairman FBR, and Minister of IT regarding the increase in withholding tax on telecom services.
The letter from the association said that by 2023, the share of mobile industry in GDP will be 6.6%, increase in taxes on telecom services will affect the national economy and the poor will have difficulty in accessing mobile.
The GSMA further wrote in its letter that the increase in withholding tax would affect innovation and growth rate in the mobile industry. Withdraw the increase in withholding tax.
Earlier, Pakistan Telecommunication Authority (PTA) clarified the increase in taxes and duties on the registration of cellular mobile devices and handsets.
In a series of tweets, PTA clarified the misconception about the so-called “PTA Tax” and wrote: “PTA is offering its Device Identifications and Registration Database (DIRBS) system for mobile device registration, without any charges for the facilitation of general public.”
Read more: Govt increases tax on mobile recharge
The telecommunication authority further clarified the tax collecting process and stated that it had nothing to do with the tax collecting procedure.
“PTA only provides technical support in the form of DIRBS through which applicants can register their mobile devices for use within Pakistan.” Telecom authority clarified.
PTA stated that the Federal Board of Revenue (FBR) is solely responsible for collecting taxes across the country.
“The taxes and duties collected in the process
