Although there is already a thread on Pakistan’s budget but I feel strongly about this particular step taken by the government which is most probably be taken back under pressure from the industry ‘giants’.
We have already given tax holidays and free profit repatriation to telecom companies in Pakistan. Import of telecom equipment is a major source of income for these telecom companies through transfer pricing. Billions are spent on import of handsets. And we all know what texting is used for in Pakistan. I was so happy to see atleast some guts from the governement to restrain this absurd growth in a non-productive sector.
Do you guys think it was a just desicion for the government to tax sms service?
As a note, the rates in Pakistan for making cell phone calls and texting are already one of the lowest.
The rates are low because the taxes are low. Most countries would charge tax on even incoming calls. The tax on card recharge are indirect tax (sales and excise) on consumers and the telecom companies don't have to pay it. If the government imposed tax on import of telecom equipment, handsets and profits of telecom companies, I would be pleased to see the taxes on consumers going away.
You can imagine the money these giants are making through the advertisements on TV. Literally thousands of telecom ads on TV everyday. Why are the industrial sectors in losses and telecom the only profit making? I dont have any grudge against their profit making but that has to be within reasonable limits and other sectors which use local raw materials (like textiles, fertilizer, cement, etc. ) should be concentrated on. My only objection is that telecom is not 'producing' any good or service that contributes to development of local sectors.
I agree with Kakabli but why on earth they have to increase the billing of electricity again which is 17%. They are making lives for poor more miserable and as a matter of fact there is not electricity in the country either and I wonder how these innocent people at the end get billed with high prices.
grand job done
i am sooooooo happy to hear this.
cuz this activity was an extreme frustration to me. from dawn to dusk, all they do is punching numbers.
ps. in canada, not only you get charged for sending sms, but also for receiving em.
that is ridiculous tax specificly on sms, all around the world VAT or Sales tax is charged on services at flat rate, which is already deducted from Prepay sim cards and post pay bills.
Govt trying to fund themselves out of sms is really pathetic act and good that have taken it back.
if some people have moral issues with this, they should educate their young ones to use it constructively or offer them something else for this time they spend on texting. morality cant be forced, its induced from within.
Although there is already a thread on Pakistan's budget but I feel strongly about this particular step taken by the government which is most probably be taken back under pressure from the industry 'giants'.
We have already given tax holidays and free profit repatriation to telecom companies in Pakistan. Import of telecom equipment is a major source of income for these telecom companies through transfer pricing. Billions are spent on import of handsets. And we all know what texting is used for in Pakistan. I was so happy to see atleast some guts from the governement to restrain this absurd growth in a non-productive sector.
Do you guys think it was a just desicion for the government to tax sms service?
As a note, the rates in Pakistan for making cell phone calls and texting are already one of the lowest.
