Govt slashes FED exemption on internet, broadband services

The Federal Government has withdrawn the exemption of Federal Excise Duty (FED) from internet and broadband services in the Finance Bill 2019-20.

The move comes only a few days after the government had been very critical of the provincial government in Sindh for the imposition of sales tax on internet and broadband services.

Federal Minister for Information Technology and Telecommunication Dr Khalid Maqbol Siddiqui had earlier slammed the Sindh government over the imposition of sales tax on internet and broadband services in the province, apparently not knowing that his own government was about to make the internet more expensive in the entire country.

The FED will be effective in all areas of the country except in provinces, such as ICT, AJ&K, FATA, PATA, and Gilgit Baltistan, and will be charged at the regular 17%.