In the budget unveiled for Financial Year 2017-18 by the Punjab government, it has been decided that 19.5pc sale tax would be enacted on all forms of internet services which include fixed line broadband, 3G and 4G LTE services and etc as reported by Propakistani. All internet customers across Pakistan are already subjected to a 14pc tax and with the inclusion of this new 19.5pc tax, the total amount of taxes will rise to roughly 35pc. However, students using internet packages below Rs1,500 will be exempted from this newly imposed sales tax.
It is pertinent to mention that two years ago, the Punjab government had initiated a similar move to enact taxes on internet services, which faced a severe backlash from the telecom sector and an uproar had been witnessed on social media. After facing severe criticism, the Punjab govt had decided to withdraw it.
But The Nation is reporting that a 5pc tax has been slapped on internet services of all kinds, which is confusing because the Finance Minister Dr Ayesha Ghaus Pasha didn’t mention the actual figure of the sales tax to be charged on internet services.
