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Category: IT & Telecom

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  • PM Imran announces setting up technology startup fund

    PM Imran announces setting up technology startup fund

    ISLAMABAD: Prime Minister Imran Khan on Tuesday announced to set up Pakistan Technology Startup Fund to provide seed funding worth Rs1 billion to around 50 startups annually.

    He made this announcement while chairing a meeting in Islamabad to follow up on his foreign visits and IT sector initiatives introduced by the government.

    READ MORE: PM Imran visits Russia on February 23-24

    Imran Khan said we are announcing tax holiday and 100 per cent foreign exchange retention for IT Companies and freelancers registered with Pakistan Software Export Bureau to incentivise investment in the IT sector for economic turnaround.

    Emphasizing on his vision to boost IT exports to $50 billion in the next few years, the Prime Minister highlighted the importance of unleashing the IT industry by providing them ease of doing business and the best incentives globally available.

    READ MORE: Tax reduced on POL products to ease inflation: PM Imran

    He directed the authorities concerned to establish Special Technology Zones on fast track basis in Islamabad and all provincial capitals to create hubs of IT and Technology innovation and investment in cities. In the first phase, sectors of CDA in Islamabad will be declared as Special Technology Zones so that IT firms and freelancers can avail the benefits offered by Special Technology Zones Authority.

    READ MORE: Pakistan’s sensitive price inflation jumps up 18%

    The Prime Minister also directed them to introduce necessary changes in the Foreign Exchange and Income Tax policies in order to help IT Startups thrive in the country. These reforms include launch of Roshan Digital IT Accounts by State Bank of Pakistan to allow freelancers and IT firms to retain 100 percent of their foreign income in foreign exchange with no restrictions on the movement of forex, resolution of double taxation of IT Sector by FBR, and the exemption from Capital Gains Tax of venture funding (VC) into startups. The Prime Minister directed to attract local and international VC funding into IT Startups for creating jobs and bringing forex.

    READ MORE: PM Imran launches 2nd phase of Raast payment system

    Imran Khan said that Tech-savvy youth and Information Technology sector are Pakistan’s biggest assets that can be exploited to bridge the huge current account deficit.

    Earlier the Prime Minister was informed that ICT export remittances in last fiscal year remained 2.1 billion dollars as compared to one billion dollars in 2018 and Pakistan is exporting to 120 plus countries in the world.

  • Supernet wins ZTBL projects worth Rs450 million

    Supernet wins ZTBL projects worth Rs450 million

    KARACHI: Supernet Limited has been awarded multiple contracts worth over Rs450 million by Zarai Taraqiati Bank Limited (ZTBL) after competitive bidding process.

    The contracts will help ZTBL strengthen the communication and IT infrastructure of their nationwide branch network, mostly in the rural areas of Pakistan.

    Supernet is actively upgrading communication infrastructure of the bank with multi-medium communication networks enabling availability of high level uptimes for branches to communicate with their head office.

    READ MORE: Supernet, Avara awarded project for supply, maintenance

    This will be a managed service model where Supernet will do installation and configuration of its Wide Area Network with ZTBL’s already existing devices for end-to-end seamless communication. The nationwide presence of Supernet’s engineering resources will ensure smooth and fast deployment of this system.

    Furthermore, Supernet will also upgrade current Local Area Network (LAN) at all of the bank’s 450+ branches across Pakistan, ensuring installation of high quality passive infrastructure of power and data communication. Bank’s appetite, demand and design of next generation LAN will ensure a long term and durable infrastructure availability in remote areas, which is quite a challenge. 

    READ MORE: Supernet awarded telecom projects worth Rs100 million

    ZTBL’s Executive Vice President and CIO, Aamir Zaffar Chaudry commented, “We are depending upon the Supernet outreach in rural areas to help us in our LAN & WAN projects /operations. Our past experience with Supernet gives us the confident that they will come good on our expectations”.

    Hassan Jafri, Vice President and Business Unit Head of Supernet commented, “Award of these contracts translates trust of our client in our services. We are excited and keen to be part of strengthening networks for ZTBL that will ensure helping our country’s agriculture -ecosystem. We will continue working with ZTBL to bring further innovative solutions and their implementation to deliver a true essence of technology for agriculture.”

    READ MORE: Suprenet gets project for optic fiber supply

    Supernet Limited, one of Pakistan’s leading telecommunications service provider and systems integrator, has been operating since 1995. Supernet offers a complete range of enabling ICT solutions with the expertise to, delver, deploy and maintain them anywhere in the country through a dedicated team of technology professionals.

    With presence of its engineering resources all over Pakistan, Supernet has a long-standing experience of providing ICT services to corporate customers. Supernet has expanded its portfolio of services to include cyber security solutions, power solutions, IT Infrastructure solution and software & application solutions.

  • Pakistan spends Rs217 billion to import mobile phones

    Pakistan spends Rs217 billion to import mobile phones

    ISLAMABAD: Pakistan has spent Rs217 billion to import mobile phones during first seven months (July – December) 2021/2022, according to data release by Pakistan Bureau of Statistics (PBS).

    The import of mobile phones grew by 17.25 per cent when compared with Rs185 billion in the first seven months of the fiscal year 2020/2021.

    READ MORE: FBR issues updated rates of duty, taxes on mobile phones

    The growth in the import of mobile phones may be attributed to depreciation in rupee value against the dollar.

    The rupee weakened by Rs17.85 or 11.33 per cent to the dollar when compared Rs157.54 on June 30, 2021 with Rs175.39 as on February 17, 2022.

    READ MORE: Regulations needed for used mobile phones’ accessories

    The local currency recorded all-time low of Rs178.24 to the dollar on December 29, 2021.

    In dollar term, the import of cellphones recorded a growth of 12 per cent to $1.27 billion during first seven months of the current fiscal year as compared with $1.13 billion in the corresponding months of the last fiscal year.

    READ MORE: FBR collects mobile phone tax, PTA clarifies

    However, the import of mobile phones recorded a decline of 8.68 per cent to $179.77 million in the month of January 2022 when compared with $197 million in the same month of the last year.

    The decline may be attributed to production of mobile phones locally.

    READ MORE: FBR increases income tax to 15% on cellular services

  • PTCL registers eight-year high revenue growth

    PTCL registers eight-year high revenue growth

    ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL), posted seven per cent growth in its revenues for the year 2021, which is eight-year high or the highest revenue growth since 2013.

    The revenue growth may be attributed to a robust commercial strategy which cements its market standing.

    According to a statement issued on Friday, the company announced its annual financial results for the year 2021 at its Board of Directors’ meeting on February 10, 2022.

    READ MORE: PTCL Group wins GDEIB award in five categories

    PTCL Group

    PTCL Group posted a revenue of Rs 138 billion in the year 2021 which is 6.3% higher as compared to 2020.

    PTCL continued its growth trajectory by posting 7% YoY revenue growth which is the highest since 2013.

    PTML (Ufone) also posted a revenue growth of 4.3% despite stiff competition in the market.

    U Bank continued its growth momentum and has achieved 8.4% growth in revenue.

    PTCL Group has posted a net profit of Rs 2.6 billion.

    READ MORE: PTCL registers 7.3% revenue growth for nine months

    PTCL:

    PTCL continued its strong performance throughout 2021. PTCL’s revenue of Rs 77 billion for the year 2021 is 7% higher than 2020, mainly driven by Broadband and Corporate & Wholesale business segments.

    PTCL registered highest Fixed broadband Sales and Net Adds in 2021 since 2015, which allowed PTCL to grow in the broadband business segment.

    PTCL is the fastest growing Fiber-To-The-Home (FTTH) operator with highest Net adds within FTTH market in 2021.

    The company has posted operating profit of Rs 4.2 billion, which is higher by 21% compared to 2020.

    Net profit of Rs 6.9 billion is higher by 14% as compared to last year.

    The company is continuously upgrading its existing infrastructure and network, besides expanding FTTH across the country to offer seamless connectivity for greater customer experience. Prompt deployment of FTTH and strong performance in Corporate and Wholesale segments are the cornerstone in PTCL’s topline growth, which along with focus on cost optimization program, has significantly increased the company’s profitability.

    READ MORE: PTCL, Dell to launch Azure Services in Pakistan

    PTCL Consumer Business:

    During 2021, the company’s Fixed Broadband business grew by 11.7% YoY, whereas PTCL IPTV segment also grew by 13% YoY. Within broadband business, PTCL Flash Fiber, the company’s groundbreaking FTTH service, showed a tremendous growth of 61.5%, whereas PTCL CharJi /Wireless Broadband Segment grew by 16.5%. Voice revenue stream has declined on account of lower voice traffic and continued conversion of customers to Over-The-Top (OTT) services.

    Business Services:

    Business services segment continued its momentum sustaining market leadership in IP Bandwidth, Cloud, Data Center, and other ICT services segments. PTCL’s Enterprise business grew by 10% as compared to last year, while Carrier and Wholesale business continued its growth momentum and achieved 9% overall revenue growth. Similarly, international business growth was recorded at 4%.

    Being the national telecom carrier and connectivity backbone in Pakistan, PTCL Group strives to provide innovative solutions to accelerate growth for a ‘Digital Pakistan’ through robust telecommunication infrastructure and a diverse portfolio of services with enhanced customer experience.

    PTML – Ufone:

    READ MORE: Ufone signs Rs21 billion agreement for 4G spectrum

    Ufone’s financial year 2021 ended on a high note despite challenging operating environment

    Ufone revenues grew by 4.3% as compared to 2020 mainly driven by growth in data services

    Ufone acquired additional 9 MHz 4G spectrum in the 1800 MHz Band in NGMS spectrum auction in September 2021, fulfilling its commitment to provide enhanced customer experience through quality services across Pakistan.

    Post spectrum auction, significant network modernization activity was carried out in Q4 2021 that has allowed Ufone to significantly improve its share of the 4G net adds within the industry.

    PTCL Group is playing a key role in supporting Universal Service Fund’s (USF) efforts for the development of telecommunication services in un-served and under-served areas of the country. This year, PTCL was awarded seven USF optical fiber projects for far flung areas of Punjab, KPK and Sindh provinces. Under these projects, PTCL will deploy a total of 4,690 KM optical fiber. Ufone was awarded five USF projects under the Broadband for Sustainable Development (BSD) umbrella during 2021 for the unserved and under-served areas of Baluchistan which involve deployment and network upgrade of 205 BTS sites.

    UBank:

    UBank, the microfinance and branchless banking subsidiary of PTCL, continued its growth trajectory and has achieved 8.4% growth in its revenue over last year by increasing its advances portfolio. The balance sheet footing of the bank crossed the Rs 100 billion mark as the bank diversified its funding streams and asset classes while ensuring positive bottom-line impact.

    Major strategic initiatives undertaken by the bank include venturing into the low-cost housing loans, international remittance, and the launch of Islamic Banking. The bank intends to invest in state-of-the-art technology to become a leading digital banking player. With the core mission of microfinance at its heart, the business model of the bank is evolving to capture new segments and customer classes to include more of Pakistan into the banking net and further its ambition of financial and social inclusion.

    Corporate Social Responsibility (CSR):

    During 2021, PTCL ran the second cohort of its flagship internship program ‘Justuju’ for Persons with Disabilities (PWDs) in collaboration with ‘Network of Organizations Working with Persons with Disabilities, Pakistan’ (NOWPDP).

    PTCL provided internet connectivity to 11 campuses of the Pehli Kiran Schools Islamabad in an effort to support the Education Sector in Pakistan. PTCL Razakaar and the company’s employee volunteer force undertook a comprehensive clothes donation drive in partnership with Akhuwat Clothes Bank for deserving communities across Pakistan.

    Shaukat Khanum Memorial Cancer Hospital and Research Centre (SKMCH&RC) recognized the PTCL Razakaar Trust for its generous donation towards augmenting COVID-19 testing facilities of the center during the peak of the pandemic in 2020.

  • Jazz recognized for driving change beyond workplace

    Jazz recognized for driving change beyond workplace

    KARACHI: To recognize the commitment in improving the lives and livelihood of women through technology, the Overseas Investors Chamber of Commerce and Industry (OICCI) awarded Jazz with the ‘Driving Change Beyond Workplace’ award at the Women Empowerment Awards 2021 held on Thursday.

    Abdul Aleem, Secretary General, OICCI presented the award to Wajida Leclerc, Chief People Officer, Jazz.

    READ MORE: OICCI organizes Women Empowerment Awards

    Jazz is dedicated to enhancing diversity and women’s empowerment within its business model and focuses on uplifting women in the society through the power of the internet.

    Female specific products and services are designed to help address many of the wider gender inequalities by digitally enabling them to access health, financial, and other life-enhancing services.

    READ MORE: Jazz Digital Park inaugurated in Islamabad

    The company’s digital financial service, JazzCash, under the GSMA Connected Women Commitment Initiative, has committed to increase the proportion of women in their mobile money customer base by 2023. In addition, all its sustainability programs ensure 50% women participation ranging from urban to rural areas so women can lead the change.

    “Inclusivity being at the heart of all our policies, we have always paved the way for gender equality within the organization as well as the society at large. This recognition further validates our holistic approach towards empowering women internally and externally and renews our vigor as we move forward in our journey of creating a digitally inclusive ecosystem in Pakistan,” said Wajida Leclerc, Chief People Officer, Jazz.

    READ MORE: Jazz’s investment in Pakistan crosses $10 billion

    Jazz is an equal opportunity employer and is creating and nurturing an inclusive and empowering culture. It’s one of the first telecom companies with a high female representation in its executive leadership. Not only does the company promote gender diversity in its work environment, it also has programs focused entirely on attracting and facilitating the female gender including the most recent ‘She’s Back – Women Returnship Program’ for women looking to return to work following a career break. Jazz is among the few early adopters in Pakistan to fully commit itself to the Women Empowerment Principles, introduced by UN Women and the UN Global Compact that focus on steering corporates to promote gender equality and women empowerment.

    Champions of Change Coalition, a globally recognized, high-profile coalition working to achieve change on gender equality issues recently welcomed Jazz CEO Aamir Ibrahim as the coalition’s member aiming to accelerate progress in creating more inclusive and progressive organizations in Pakistan.

    READ MORE: PTA renews Jazz license for $449.2 million

  • Etisalat ranked as world’s strongest telecom brand

    Etisalat ranked as world’s strongest telecom brand

    ISLAMABAD: Etisalat has been ranked as the world’s strongest telecom brand and is the first in the Middle East and Africa (MEA) region to achieve this milestone recognition by Brand Finance, the world’s leading brand valuation authority.

    With a telecom portfolio of well over $12.5 billion, Etisalat not only retained its AAA brand rating but also its position in MEA as the strongest brand across all categories and the most valuable brand portfolio.

    Eng. Hatem Dowidar, CEO, Etisalat Group, said: “To be recognized as the world’s strongest telecom brand and as the most valuable telecom brand portfolio in MEA underline the success of our strategic initiatives to build a robust telecom infrastructure that creates added value for our customers wherever we serve. With our relentless focus on being customer-centric, we continue to push our horizons by investing in next generation technology that enhance our service offering and help shape the digital future.”

    He added: “In this digital-first era, our focus is to be agile to meet the evolving requirements of our customers and deliver relevant and flexible services. Since our inception in 1976, we have been led by a vision to create a world-class telecom infrastructure that is central to economic progress.”

    Brand Finance also named Eng. Hatem Dowidar to the Elite List of Brand Guardians globally, jumping 4 places compared to last year’s ranking. This recognises the ground-breaking initiatives that he launched since he joined Etisalat in September 2015, which played a key role in propelling Etisalat’s business growth. Assuming the role of Group CEO in 2020, he stewarded the company’s growth through the fast-changing telecom and technology landscape following the COVID-19 pandemic. His astute brand stewardship served as the foundation for enhancing Etisalat’s brand reputation as well as employee engagement.

    David Haigh, Chairman and CEO, Brand Finance, said: “Guided by the vision to ‘drive the digital future to empower societies’, Etisalat is the world’s strongest telecoms brand of 2022, as well as retaining its status as the strongest brand in the Middle East and Africa for the second consecutive year. Etisalat’s brand focuses on togetherness and plays its part by providing a first-class telecoms infrastructure across its footprint. Exceptional rollout of 5G technology has also meant that the Etisalat Group’s portfolio of brands is the most valuable amongst telecoms organisations in the Middle East.”

    Attributing the success to his team at Etisalat, Dowidar added: “Our significant brand value growth is the result of the contributions and dedication of our employees across all the markets where we operate. Alongside our partners, they are the cornerstones of our efforts to be a digital-first company that is future-ready, while upholding our vision to empower societies, and turn challenges into opportunities.”

    Etisalat’s robust fibre-optic infrastructure enhances the customer experiences across all business operations. Etisalat raised the benchmark as the world’s fastest network by delivering the best 5G experience at Expo 2020 Dubai as its official telecommunication and digital services partner, surpassing the expectations of millions of visitors. Etisalat has built a dedicated network for Expo 2020, which is the first 5G commercial site in MENA with more than 8,000 Wi-Fi access points, 8,500 mobile access points, and 700 km of fibre-optic cable.

    Etisalat has leveraged its 46 years of telecoms experience and its investment in telecom infrastructure to enable the progress of the people and business alike, in addition to supporting vital sectors such as healthcare and education, especially following the pandemic.

    As the telecom sector continues to evolve at breakneck speed, Dowidar is focused on strengthening Etisalat’s strategic role in empowering the communities it serves in global markets. “Our proven ability to deliver seamless connectivity is our differentiating strength. We are fully equipped to unlock the potential of digital technologies to drive digital transformation at all levels – from government to business to individuals.  Our recognition as the world’s leading telecom brand further fuels our ambition to expand to new geographies and build innovative partnerships, underpinning Etisalat as a brand that makes a positive difference.”

    Etisalat’s digital arm has already made great strides in its digital B2B services, particularly in cybersecurity, the Internet of Things (IoT), and cloud connectivity. Help Ag, Etisalat Enterprise Digital’s cybersecurity arm, protects customers against identity theft and serve as an effective digital transformation vehicle.

    Brand Finance is the world’s leading independent branded business valuation and strategy authority. Founded in 1996 and headquartered in the City of London, it aims to ‘bridge the gap between marketing and finance.’ Brand Finance evaluates over 5,000 brands across all sectors and geographies every year. The 500 most valuable brands are included in the Brand Finance Global 500 report.

    Earlier, Brand Finance also declared PTCL, an Etisalat subsidiary and the leading telecom operator in Pakistan as the fastest growing brand in Pakistan at a special ceremony held in Barcelona during the Mobile World Congress 2018.

  • FBR issues updated rates of duty, taxes on mobile phones

    FBR issues updated rates of duty, taxes on mobile phones

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued the updated applicable rates of duty and taxes for clearance of mobile phones.

    The FBR said that following rate of duty and taxes for the clearance of mobile phones shall be applicable during (2021-2022) (with passport applied within 60 days of arrival in Pakistan):

    READ MORE: FBR collects mobile phone tax, PTA clarifies

    Mobile Phones having cost and freight (C&F) value up to $30, the rate of duty and tax has been fixed at Rs430.

    Mobile Phones having C&F value above $30 and up to $100, the rate of duty and tax has been fixed at Rs3,200.

    Mobile Phones having C&F value above $100 and up to $200, the rate of duty and tax has been fixed at Rs9,580.

    Mobile Phones having C&F value above $200 and up to $350, the rate of duty and taxes shall be Rs12,200 + 17 per cent Sales Tax Ad Valorem.

    READ MORE: FBR increases income tax to 15% on cellular services

    Mobile Phones having C&F value above $350 and up to $500, the rate of duty and tax shall be Rs17,800 + 17 per cent Sales Tax Ad Valorem.

    Mobile Phones having C&F value above $500, the rate of duty and tax shall be Rs27,600 + 17 per cent Sales Tax Ad Valorem.

    Rate of duty and taxes on mobile phones 2021/2022 (Applied with CNIC):

    Mobile Phones having C&F value up to $30, the rate of duty and tax has been fixed at Rs550.

    READ MORE: FBR issues new FED rates on motor vehicles

    Mobile Phones having C&F value above $30 and up to $100, the rate of duty and taxes has been fixed at Rs4,323.

    Mobile Phones having C&F value above $100 and up to $200, the rate of duty and tax has been fixed at Rs11,561.

    Mobile Phones having C&F value above $200 and up to $350, the rate of duty and tax shall be Rs14,661 + 17 per cent Sales Tax Ad Valorem.

    Mobile Phones having C&F value above $350 and up to $500, the rate of duty and tax shall be Rs23,420 + 17 per cent Sales Tax Ad Valorem.

    READ MORE: Banks to share business account details to FBR

    Mobile Phones having C&F value above $500, the rate of duty and tax shall be Rs37,007 + 17 per cent Sales Tax Ad Valorem.

  • Jazz Digital Park inaugurated in Islamabad

    Jazz Digital Park inaugurated in Islamabad

    VEON Group CEO, Kaan Terzioğlu on Monday inaugurated the Jazz Digital Park (JDP) that was established with an investment of over $8 million.

    Located in Islamabad, JDP will accelerate the country’s digital transformation ambition by significantly improving the existing level of IT services being provided to various sectors.

    READ MORE: Jazz’s investment in Pakistan crosses $10 billion

    With a current capacity of more than 300 racks, expandable up to 450 racks, and a 3-megawatt power infrastructure, JDP is Pakistan’s largest Telecommunications Industry Association (TIA) Tier-III certified data center in terms of white space and power capacity. Jazz will utilize this digital park to offer secure IT infrastructure and hardware hosting facilities to businesses as well as local startups.

    JDP will also be hosting the new cloud platform about to be launched by Jazz. The onshore cloud will be a significant step forward in ensuring that data created in Pakistan is hosted within the country.

    Speaking at the inauguration, Kaan Terzioğlu said, “Utilising our leadership position in Pakistan and global expertise, we are focused on creating a flourishing digital ecosystem in Pakistan. Jazz Digital Park will serve as a key enabler of our digital operator strategy and is in line with our mission to simplify digital infrastructure challenges for local and regional enterprises.”

    READ MORE: PTA renews Jazz license for $449.2 million

    According to Aamir Ibrahim, CEO, Jazz: “Since the pandemic and the subsequent acceleration to digital platforms, businesses across various sectors are re-assessing their cloud adoption strategies and cloud readiness. The Jazz Digital Park represents a milestone for the country’s ICT industry as it is expected to simplify digital infrastructure challenges local businesses face. This facility is at the heart of our business strategy and validates our commitment to our customers as they continue their digital transformation journey.”

    READ MORE: Jazz awarded contract worth Rs154 million

    Jazz also plans to facilitate the Pakistani startup ecosystem by offering cloud credits under its premium startup accelerator program Jazz xlr8 at the National Incubation Center. The cloud infrastructure is not only expected to reduce the entry barrier for upcoming Pakistani startups, but is also expected to enable existing startups to accelerate their scaling up programs.

    Jazz Digital Park provides one of the largest IT capacities, enabling businesses, including service providers to co-locate their critical IT infrastructure. It is equipped with four-directional fiber connectivity, 100 per cent. redundancy for all power and cooling systems, a Bus Trunking System, a VESDA smoke detecting system, and a Performance Optimized Data Center solution to reduce its carbon footprint. These state-of-the-art features fulfill all operational requirements for a business, including 24/7 customer service, security, and system backups.

  • FBR collects mobile phone tax, PTA clarifies

    FBR collects mobile phone tax, PTA clarifies

    In response to the recent surge in taxes and duties on the registration of cellular mobile devices and handsets, the Pakistan Telecommunication Authority (PTA) issued a clarification on Monday, emphasizing that the applicable duty and taxes are solely collected by the Federal Board of Revenue (FBR).

    (more…)
  • FBR increases income tax to 15% on cellular services

    FBR increases income tax to 15% on cellular services

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday said the advance income tax on cellular services has been increased to 15 per cent from 10 per cent.

    The FBR issued Circular No. 12 of 2022 to explain amendments to Income Tax Ordinance, 2001 made through Finance (Supplementary) Act, 2022.

    The increase in advance tax rate on cellular service would generate additional 4.5 billion for the FBR.

    READ MORE: FBR issues new FED rates on motor vehicles

    The changes in the withholding tax regime on usage of internet and mobile phones services were introduced through the Finance (Supplementary) Bill, 2021, which was later approved by the national assembly.

    The FBR said that through the Finance Act, 2021 federal excise duty (FED) was levied on telecom services. However, telecom companies challenged the duty and got a favourable decision.

    “A marginal increase in adjustable advance tax has been proposed from 10 per cent to 15 per cent to make up for revenue loss from telecos,” the FBR added.

    READ MORE: Banks to share business account details to FBR

    The FBR collects the advance tax on telephone and internet users under Section 236 of Income Tax Ordinance, 2001.

    According to the ordinance:

    “Telephone and internet users.- (1) Advance tax at the rates specified in Division V Part IV of the First Schedule shall be collected on the amount of – (a) telephone bill of a subscriber; (b) prepaid cards for telephones; (c) sale of units through any electronic medium or whatever form ; and (d) internet bill of a subscriber; and (e) prepaid cards for internet.

    (2) The person preparing the telephone or internet bill shall charge advance tax under sub-section (1) in the manner telephone or internet charges are charged.

    READ MORE: Debt, credit card machines must for POS retailers: FBR

    (3) The person issuing or selling prepaid cards for telephones or the internet shall collect advance tax under sub-section (1) from the purchasers at the time of issuance or sale of cards.

    (3A) The person issuing or selling units through any electronic medium or whatever form shall collect advance tax under sub-section (1) from the purchaser at the time of issuance of sale of units.

    (4) Advance tax under this section shall not be collected from the Government, a foreign diplomat, a diplomatic mission in Pakistan, or a person who produces a certificate from the Commissioner that his income during the tax year is exempt from tax.”

    READ MORE: FBR slashes sales tax rates on petrol, HSD