Pakistani cellcos demand reduction in sales tax

2 Jun 2009

According to Pakistan’s Daily Times mobile operators have approached the government with proposals calling for the elimination of activation tax, and reduction in general sales tax from 21% to 16%. It is understood the operators claim that without the cuts foreign direct investment (FDI) in the sector could be affected. The Pakistan Telecommunication Authority (PTA) has taken the proposals to the Federal Board of Revenue, calling specifically for the cut in general sales tax, and the board is expected to assess the request in its next finance bill. Highlighting their case, an unnamed cellco is reported to have said that approximately 2,000 mobile base stations were installed each year, but that this had fallen to 800 on the back of high taxation levels.