Telecom and Taxes

Your long distance bill:

xyz minutes used @ rate = $76
Taxes on $76 = $28

Total bill = $104

My God, $28 for Taxes, that is 36.8%. Government knows the problems in telecom sector, and still a user of telecom services is supposed to pay 36.8% taxes :eek:

Why would telecom sector not suffer if user can use calling cards, in that case

35 minutes used @ rate = $4.85
taxes already included in $4.85

Isn’t govt. supposed to “help” telecom sector by lowering all those tens of taxes?

Economy....whenever you request an analyses on such topics that may be applicable to sector policies of a specific country, it would actually help to keep the discussion on course and more palatable to you...kyonke ho sakta hai main pakistan telecom ne qaseeday gaane lagoon yahan par :~)

Talking from a general viewpoint, the taxes on utilities are subjected to a slab-structure which is progressive in nature. What it means simply is: the higher you consume (talk), the higher taxes are slapped on. So in essence they want you to speak less, concise, get the point across and hang up! :D

Btw, the supposed 'help' that the government can provide to the telecom sector by lowering taxes here (and slapping them on somewhere else) may still be an elusive idea-to say the least, but that may be topic for a separate discussion. :~)

^ okay, I was talking about Telecom sector in US :)