Finance Bill 2019: Duty exemption on foreign bandwidth services withdrawn

ISLAMABAD: Federal Board of Revenue (FBR) has said that telecom services provided in Islamabad Capital Territory are subject to Federal Excise Duty (FED) under the Federal Excise Act, 2005.

However, internet services are presently exempt from payment of FED under Third Schedule to the Federal Excise Act, 2005.

Similarly, bandwidth services are also exempted from payment of FED.

In order to protect local services providers, it is proposed through the Finance Bill 2019 to withdraw exemption on services provided by foreign satellites and maintain exemption only on terrestrial bandwidth services.

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