Good News For Mobile Users As Govt Announces Tax Reduction

Fida Hussnain (@fidahassanain) Published March 13, 2021 | 07:34 PM

IT Minister Syed Aminul Haq has termed this decision a major achievement of his ministry in providing services to mobile users and paving way for digital Pakistan in future.

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-March 13^th, 2021) Federal Minister for Information Technology and Telecom Syed Aminul Haq said that tax reduction on Telecom sector and mobile users was a major achievement.

Addressing a press conference, Federal Minister for Information Technology and Telecom Syed Aminul Haq also vowed to spread the spirit of digital Pakistan and connectivity to remote areas of the country.

Taking to Twitter, The Ministry of IT and Telecom said: “Tax reduction on Telecom sector and mobile phone users is a major achievement of Ministry of IT and Telecom that will benefit not only mobile phone users but will also help spread the spirit of digital Pakistan (#connectivity) to remote areas of the country,”.

The tax on mobile phones will also go down gradually as the IT sector has been given the status of “industry”.

The ministry said that the other taxes on the telecom sector and mobile phone users would also come down gradually.

Syed Aminul Haq had said that advance tax on mobile phone users would go down from 12.5% to 10% in the next financial year of 2021 and 22 while 8 per cent further reduction would be made in the year next to come: 2023.

Likewise, the Federal Excise Duty (FED) would also be reduced from 17 per cent to 16 per cent in telecommunication services, said the minister, adding that the government was planning 6% excise duty reduction along with tax reduction on various servicesl.

According to reports, there would be benefit for the public as Rs250 charges on sim purchase had also been withdrawn.

Talking about Information and Communication Technology (ICT) export remittances including export of telecommunication, computer, and information services, the minister said that these exports reached $958 million at a growth rate of 40% during July-December in the current fiscal year of 2020-21 as compared to $684 million during the same period last year.