News, Technology

Sindh removes tax on internet, makes cuts to the tax on telecom services

Muneeb Ahmad Written by Muneeb Ahmad · 1 min read>
Nayatel, fiber to home broadband service with current operations in Islamabad and Rawalpindi, is expected to launch the service for the residents of Faisalabad, reports ProPakistani. The report further claims that the service will be officially launched on 15th of November 2016. Nayatel is Pakistani premiere Triple Play (Internet, Cable TV, Telephone) service provider bringing fiber straight to the premises of more than 30,000 homes and offices . The following areas and colonies are expected to be covered. * Kahuranwala till Shahkot on Lahore-Shiekhpura FSD Road. * Kahuranwala till Gourmet Factory on Jaranwala Road. * Gatwala Chowk till Nishat Abad Bridge on Lahore-Shiekhpura FSD Road. * Gatwala Chowk till Kashmir Bridge on Canal Road * Kashmir Road , Bibi Jan Road and 208-Chak Raod * Alfateh Garden * Alhamra Town * Faisal Garden * Forest Colony * Canal Garden * Green Village * Amir Town * Canal Park * VIP Canal Park * Heaven Habitat * Maryam Villas * Qamar Garden * Makkah Garden * Al-Qadir Garden * Raza Garden * Abdullah Garden * Naveed Garden * Raza Town * New Green Town * Faisal Town * Officers Colony No 2 With the recent expansion in Faisalabad, Nayatel will also work on to spread its wings in other cities of the country specially those surrounding Rawalpindi, Islamabad and now Faisalabad.

The Sindh Board of Revenue, as per a major step to reduce the government taxes over the IT services, has removed taxes over the broadband, DSL and other internet connectivity services. The Sindh Government also has went on to reduce the Government Sales Taxes (GST) over other telecom services.

The tax, in Sindh, which was previously being charged at 19.5%, has been reduced effectively to zero, if the charges remain below Rs. 1500 for an up to 2MB connection, and if the charges remain under a threshold of Rs. 2500 for a connection with broadband ranging from 2 MB to 4 MB. For the connections with a broadband connection greater than 4 MB, the GST of 19.5 % will still be applied.

As far as the cut on other telecom services are concerned, the Sindh government has reduced the GST from 19.5% to 19%. The Sindh government had announced to reduce the taxes to 18% a couple of years ago, a decision which wasn’t approved by the cabinet.

After the said take, Sindh has become the third province to cut the GST over internet services, following Punjab and Balochistan. The KP government, has now become the only province which still charges the GST over the internet services.

The moves to eradicate a hefty tax of 19.5 % especially over a product like internet, a service very widely used by the public, is indeed a courageous step. In the today’s era, the internet has become a necessity of every household. The IT has brought revolution to the traditional processes. The Internet is a product of current age which is widely used by all of us alike be it the students, employees, farmers, businessmen, and for that matter literally every being of the twenty-first century. The step is surely bound to bring ease to the lives of Sindhi people.

Source — ProPakistani

Written by Muneeb Ahmad
I love to talk about global tech-happenings, startups, industry, education and economy. Get in touch: muneeb@techjuice.pk. Profile