Budget 2021/2022: FED reduced on telecom services

Budget 2021/2022: FED reduced on telecom services

ISLAMABAD: The government has announced reduction in Federal Excise Duty (FED) from 17 percent to 16 percent to facilitate businesses and provide relief to the general masses.

Finance Minister Shaukat Tarin while presenting federal budget 2021/2022 on Friday said the government had decided to reduce FED on telecom services.

He said that to facilitate businesses and provide relief to the general masses, rate of federal excise duty on telecommunication is proposed to be reduced from 17 percent to 16 percent.

Further, the finance minister announced withdrawal of federal excise duty on Merchant Discount Rate (MDR) charged on POS by banks, so that businesses are encouraged to carry out transactions through POS machines.