Islamabad: On December 5, 2017 Senate committee in Pakistan revealed that the Telecommunication contributed Rupees paid 648 billion in Taxes during the year 3013-2017.
According to the reports that Taxes were paid on the account of various taxes/ duties to the nation exchequer during the period of four years, and that would be the high taxes ever paid by any company to income tax but still there were expected loopholes in the presented report by telecommunication.
Reports proclaimed by one of income officer, “Telecom Sector Contributed Rs. 684 Billion in Taxes during 2013-17, this is the huge amount first time ever brought to Pakistan.”
During the Sub-Committee of the Senate Standing Committee on Cabinet Secretariat chaired a meeting with Kalsoom perveen yesterday it had been told, “Approximately $4.2 billion has been invested by telecom companies in Pakistan during the last four fiscal years. Most of this investment has been made by cellular mobile companies in Pakistan.
“Telecom sector attracted inflow of more than $2.3 billion Foreign Direct Investment (FDI), corresponding to $ 651.5 million net FDI during the last four fiscal years.
“The spectrum auction for NGMS, commonly known as 3G/4G services, constituted a large portion of reported FDI inflow which comes to around $965 million with $147.5 million plus markup to be paid in installments during the next five years.”
Committee submitted the report in written to the Senate in which it was clearly mentioned that Pakistan Telecommunication Authority (PTA) contributed a total of Rs. 178.84 billion during the last four years to the national exchequer including
- Rs. 96.48 billion in 2013-14,
- Rs. 7.02 billion in 2014-15,
- Rs. 34.11 billion in 2015-16,
- Rs. 33.13 billion in 2016-17,
- Rs. 8.10 billion in 2017-18.
Committee Chairman Kalsoom Perveen said, “If telecom companies are doing business in the country, but not paying actual taxes, then what is the advantage to the national exchequer.”
However, it was observed that companies had been given advantages at the cost of government expenses.
She told about an amnesty scheme that it might be launched to attract more companies to the county but she was not satisfied from the briefing and directed Federal Board of Revenue (FBR), NADRA, FIA and PTA to submit related documents in the next meeting.
She inquired by asking question to the Cabinet Division about postings/transfers, recruitments as well as the administrative power and selection criteria in PTA, which are under investigation.
Furthermore, the committee directed to inquire more information about PTA that successfully carried out an auction for the Next Generation Mobile Services (NGMS) spectrum, paving way for the launch of 3G, 4G LTE services in Pakistan.
More than 90% of the population had access to telecom services and by the end of 2017, total tele-density subscription of inhabitants reached 72.01% including mobile phones and Local loop services.
Reporter: Syeda Faiza Bukhari
