The ongoing tax dispute between provincial governments and Long Distance and International (LDI) telecom operators has been escalated to the Special Investment Facilitation Council (SIFC) for resolution.
According to a news report, LDI operators are contesting the legality of provincial taxes on international incoming voice services, claiming they exceed provincial authority.
The dispute, which has persisted without resolution, prompted the Ministry of IT to involve the SIFC after previous efforts to reach a consensus failed. LDI operators continue to provide telecom services, but many of their licenses expired between July and August 2024. The situation is further complicated by outstanding payments owed to the Universal Service Fund (USF).
Provincial governments and the Ministry of IT maintain that the taxes align with international standards.
In SIFC discussions, the Ministry proposed that an impartial entity be tasked with conducting due diligence to resolve the matter in collaboration with the provinces, LDI operators, and the Federal Board of Revenue (FBR).
The Ministry of IT also called for legal clarity, suggesting the involvement of the Law Division and the Attorney General of Pakistan to provide a comprehensive interpretation of both domestic and international regulations governing telecom taxation.
