The telecommunications industry on Saturday breached the government’s plan to tax people whose call times exceed the five-minute mark.
The government plans to charge these calls at Rs 0.75 per five minutes.
The telecommunications industry has declared the proposed tax “impractical” for the following reasons:
- This move could create problems for 98% of prepaid customers who enjoy bundles.
- A new tax could then put an end to extremely convenient bundles for the public.
- The tax could encourage consumers to cut calls five minutes earlier and call back.
- The reduction in calls will allow consumers to avoid the tax deduction.
- The government will get nothing if the appeal is cut.
- An additional tax will be a complication for telecom operators and a nuisance for the public.
Finance Minister, Finance Minister Shaukat Tarin, addressing a session of the National Assembly to discuss the budget, said talking on a cell phone for more than five minutes will be taxed at 75 paisas, but he there will be no tax on SMS and mobile internet. .
Initially, the 2021-22 finance bill proposed a Re1 tax on each call if the duration exceeds three minutes, a tax of Rs5 per GB of internet use and 10 paisas on each SMS.
However, during a post-budget press conference, Tarin had clarified: “We are not doing it at the moment.”
He said the proposals were opposed by the prime minister and the federal cabinet.