KARACHI: Government of Pakistan has decided to reduce taxe on mobile phone service usage as a reduction of withholding tax and Federal Excise Duty on telecom services is proposed through Finance Bill 2017.
According to proposed budget for year 2017-18, WHT or income tax for telecom services is reduced from 14 percent to 12.5 percent.
Similarly, the federal excise duty for federal areas (Islamabad, FATA and Balochistan) has been reduced from 18.5percent to 17percent.
Not to mention, FED is not deducted for mobile services used in provinces, instead they charge GST at various rates. Federal government hoped that provincial government shall also reduce the rate of sales tax on mobile telephony and will bring it down to 17percent.