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Category: IT & Telecom

Explore IT and Telecom stories with Pakistan Revenue, your go-to source for the latest updates on Pakistan’s technology and telecom sector. Stay ahead with real-time industry insights and economic developments.

  • Pakistan pays Rs119.22 billion for import of mobile phones

    Pakistan pays Rs119.22 billion for import of mobile phones

    ISLAMABAD: Pakistan has paid Rs119.22 billion for import of mobile phones during the first five months (July – November) of 2020/2021 owing to high demand for online financial transactions in the wake of coronavirus.

    According to data released by Pakistan Bureau of Statistics (PBS), the import of mobile phones surged by 53 percent to Rs119.22 billion during the first five months of the current fiscal year as compared with Rs78 billion in the corresponding months of the last fiscal year.

    Industry sources said that the import of mobile phones surged due to the coronavirus pandemic and people opted to make financial transactions through an online system.

    Further, they said the implementation of laws making it mandatory that only verified mobiles through Pakistan Telecommunication Authority (PTA) to be activated for local services has also discouraged informal channels for import of mobile phones.

    They said that the depreciation of Pak Rupee had also an impact on the surge of mobile phone imports.

    The import of mobile phones in terms of dollar grew by 45 percent to $724 million during the first five months of the current fiscal year as compared with $498 million in the same period of the last fiscal year.

  • Taxes removed on locally manufactured mobile phones; ECC accords approval

    Taxes removed on locally manufactured mobile phones; ECC accords approval

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved removal of taxes on locally manufactured mobile phones.

    (more…)
  • Pakistan imports mobile phones worth Rs92.8 billion in four months

    Pakistan imports mobile phones worth Rs92.8 billion in four months

    KARACHI: Pakistan has imported mobile phones worth Rs92.8 billion during the first four months of the current fiscal year, according to data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.

    (more…)
  • ECC sets up committee to examine proposal of manufacturing SIM/smart cards

    ECC sets up committee to examine proposal of manufacturing SIM/smart cards

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday constituted a committee to examine a proposal for manufacturing of SIM/Smart-cards in the country.

    The meeting of the cabinet committee was chaired by Advisor to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Sheikh while among others it was attended by Minister for Industries and Production Hammad Azhar, SAPM on Revenue Dr. Waqar Masood, SAPM on Petroleum Nadeem Baber and Advisor to the PM for Institutional Reforms and Austerity Dr. Ishrat Hussain attended the meeting. Governor State Bank of Pakistan Dr. Reza Baqir also participated through video link.

    In light of a summary presented by the Ministry of IT and Telecommunication regarding manufacturing of SIMs/Smart-cards in Pakistan, after due deliberation, the chair directed to constitute a Committee to examine the proposal and present a report for a way forward within two weeks.

    The Committee would be chaired by the Minister of Industries and Production Hammad Azhar and would include representatives from the Ministry of IT & Telecom., FBR and Board of Investment (BOI).

    The ECC constituted a committee to decide a timeline for export of mango and kinnow after due consultation with the stakeholders.

    The committee consisting of representatives from the Ministry of Commerce and Ministry of National Food Security and Research (MNFS&R), according to press statement issued by the Finance Ministry here.

    The ECC approved budgetary allocation in favour of NITB for provision of ICT services at the Prime Minister’s Office for Prime Minister’s Kamyab Jawan Programme for FY/2020-21 to the tune of Rs53 million as requested by the Ministry of Information Technology and Telecommunication.

    The ECC gave concurrence to the proposal by the Petroleum Division, in principal, regarding allocation of gas from Bashar X-IST to third party up to 1.0 MMCFD.

    A summary was presented by the PIACL, Aviation Division before ECC regarding GOP cash support for the Voluntary Separation Scheme (VSS). After thorough discussion, it was decided to approve, in principle, the voluntary separation from service scheme for PIA.

    The ECC also approved four separate Technical Supplementary Grants for the Ministry of Defence and Ministry of Interior for various projects during current FY 2020-21.

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  • Committee discusses unsold spectrum of next generation mobile services

    Committee discusses unsold spectrum of next generation mobile services

    ISLAMABAD: Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance and Revenue on Thursday chaired a meeting of the advisory committee for the release of unsold spectrum of next generation mobile services (NGMS).

    Minister for Science and Technology, Fawad Chaudhry also participated in the meeting.

    The committee was briefed by Chairman PTA and Secretary, Ministry of Information Technology about the latest developments on the sale of available spectrum of next generation mobile services.

    The members of Frequency Allocation Board also shared their input on the subject.

    The committee was briefed that the process for hiring of the consultant for the sale of available spectrum would be completed within 60 days and report will be prepared and submitted before the committee accordingly.

    It is expected that the initial report will be ready by December 2020.

    The process for the sale of spectrum will follow after the hiring of the consultant and tentatively would be completed within this financial year.

    Adviser Finance, as Chairman of the Committee, directed to complete the task of the hiring of the consultant at the earliest.

    He also stated that the whole process of auction must be transparent and an officer may be designated to apprise the public about the progress regarding sale of spectrum on regular basis.

    The whole process would contribute towards strengthening and expanding communications / IT Services across the country, would create more job opportunities, and improve the ease of doing business.

    The next meeting of the Advisory Committee is expected to take place in December 2020.

  • Jazz pays Rs5 billion income tax liability on court order

    Jazz pays Rs5 billion income tax liability on court order

    ISLAMABAD: Pakistan Mobile Communication Limited (PMCL) – the operator of Mobilink / Jazz on Thursday paid an amount of Rs5 billion out of total Rs22 billion as tax demand created by Large Taxpayers Office (LTO) Islamabad.

    The payment has been made as per the directions of Islamabad High Court (IHC) order in Income Tax reference No. 32/2020 dated November 10, 2020.

    Earlier, the IHC allowed PMCL to deposit an amount of Rs5 billion against income tax liability.

    A division bench of the IHC in a hearing on November 10, 2020 granted the application of the petitioner i.e. PMCL to deposit Rs5 billion. The high court also granted interim relief to the petitioner and suspended notices sent to the applicant under Section 140 of the Income Tax Ordinance, till the next date of hearing i.e. December 02, 2020.

    During the proceedings the counsel for the petitioner submitted that the petitioner was willing and ready to pay a sum of Rs5 billion.

    The counsel for the Federal Board of Revenue (FBR) submitted that the sum offered to be deposited by the petitioner was meager as compared to the total liability. The counsel submitted that the applicant is liable to pay a sum of Rs22 billion plus penalty etc.

    The LTO Islamabad last month initiated tax recovery of Rs25 billion from M/s. PMCL by sealing of its business premises.

    The LTO Islamabad took the action against the mobile operator as income tax amount Rs25.39 billion was outstanding against the defaulter.

    “The defaulter is refraining itself deliberately, dishonestly and without lawful excuse to discharge tax liability and thus causing huge loss to the national exchequer,” according to a notice of LTO Islamabad.

    While responding to the report, the PMCL issued the following statement:

    “Jazz is a law-abiding and responsible corporate citizen. Our contribution to Pakistan’s economy over the past 25 years is significant.

    “We have received a notice from FBR this afternoon. Jazz has made tax submissions based on legal interpretations of the tax owed. We will review and take measures under our legal obligations and will collaborate with all concerned institutions for an early resolution of this issue.”

    Related Stories

    — FBR initiates Rs25 billion tax recovery from Mobilink

    — Mobilink terms FBR recovery action as unfortunate

  • Zong awarded contract to provide 4G coverage in rural, remote areas

    Zong awarded contract to provide 4G coverage in rural, remote areas

    ISLAMABAD: The Universal Service Fund (USF) has awarded contracts worth Rs112 million to Zong 4G for providing 4G network coverage in rural and remote areas of Sindh and Balochistan.

    Federal Minister of IT and Telecommunication, Syed Amin Ul Haque inaugurated the projects at a ceremony held at Zong 4G Headquarters on Wednesday.

    The contracts were signed by Haaris Mahmood Chaudhary, CEO, USF with Wang Hua, Chairman and CEO, Zong 4G.

    The Federal Secretary for IT & Telecommunication Shoaib Ahmed Siddiqui and Chairman PTA, Major General (R) Amir Azeem Bajwa were also present at the ceremony.

    Chief Guest of the ceremony, Federal Minister for IT and Telecommunication, Syed Amin Ul Haque said: “To achieve the Digital Pakistan vision, it is imperative that all areas and citizens of Pakistan have access to mobile phones and Broadband services.

    “This will ensure that not only is the citizenry connected to the digital world but they will be in a position to benefit and use Information Communication Technology (ICT) facilities.”

    He informed that the Government is working arduously on mobile phone applications, web portals, e-commerce, e-government, online jobs, digital payments, establishment of IT parks and all other avenues which are related to the Digital Pakistan vision.

    The Federal Minister congratulated Zong 4G and USF on the signing of the contracts and expressed the hope that this will ensure that residents living in remote areas of Baluchistan and rural pockets of Karachi will have better connectivity through Zong 4G’s superior technical expertise.

    He stated that USF is working on projects worth billions of rupees which include laying optical fiber, deploying telecommunication infrastructure and expanding networks.

    Furthermore, he announced that Ministry of IT and Telecommunication with USF’s support will be launching new development projects pertaining to network and Broadband expansion monthly.

    While sharing his views at the ceremony, Zong 4G’s Chairman and CEO Wang Hua said: “Since its inception, Zong 4G has been at the forefront of digital transformation in Pakistan, striving to bring the unserved and underserved areas and masses under the folds of connectivity and digital inclusion.

    “We thank USF for awarding us these projects and the government of Pakistan for supporting us in pursuing our passion for an empowered and Digital Pakistan.

    “We stay committed to our mission of serving the Pakistani people in all possible ways and a project like this simply fuels that passion of ours.”

    Also, sharing his thoughts at the ceremony, CEO USF, Haaris Mahmood Chaudhary said: “These projects will benefit an unserved population of 0.5 million in 263 unserved Mauzas, thereby covering an unserved area of 4,121 sq.km. of Nasirabad, Jaffarabad, Sohbatpur, Karachi West & Malir districts.”

    “As advised by the Federal Minister for IT and Telecommunication, USF is actively working to provide robust connectivity in unserved and underserved areas of Pakistan. We are committed to playing our role in making Digital Pakistan vision a reality and bridging the digital divide.”

    Senior officials of the Ministry of IT and Telecommunication, USF and Zong 4G were also present at the ceremony.

  • SRB issues sales tax rate on telecom services

    SRB issues sales tax rate on telecom services

    KARACHI: Sindh Revenue Board (SRB) on Tuesday updated working tariff up to November 01, 2020 for levy of sales tax on telecommunication services.

    The sales tax on services are exempt on telecommunication services involving charges payable on the international leased lines or bandwidth services used by the software exporting firms registered with the Pakistan Software Export Board.

    Following is the table for the application of sales tax on telecommunication services along with tariff headings:

    9812.1000Telephone services19.5%
    9812.1100Fixed line voice telephone service19.5%
    9812.1200Wireless telephone19.5%
    9812.1210Cellular telephone19.5%
    9812.1220Wireless Local Loop telephone19.5%
    9812.1300Video telephone19.5%
    9812.1400Payphone cards19.5%
    9812.1500Prepaid calling cards19.5%
    9812.1600Voice mail service19.5%
    9812.1700Messaging service19.5%
    9812.1710Short Message service (SMS)19.5%
    9812.1720Multimedia message service (MMS)19.5%
    9812.1910Shifting of telephone connection19.5%
    9812.1920Installation of telephone19.5%
    9812.1930Provision of telephone extension19.5%
    9812.1940Changing of telephone connection19.5%
    9812.1950Conversion of NWD connection to non NWD or vice versa19.5%
    9812.1960Cost of telephone set19.5%
    9812.1970Restoration of telephone connection19.5%
    9812.1990Others19.5%
    9812.2000Bandwidth services19.5%
    9812.2100Copper line based19.5%
    9812.2200Fibre-optic based19.5%
    9812.2300Co-axial cable based19.5%
    9812.2400Microwave based19.5%
    9812.2500Satellite based19.5%
    9812.2900Others19.5%
    9812.3000Telegraph19.5%
    9812.4000Telex19.5%
    9812.5000Telefax19.5%
    9812.5010Store and forward fax services19.5%
    9812.5090Others19.5%
    9812.6000Internet services19.5%
    9812.6100Internet services including email services19.5%
    9812.6110Dial-up internet services19.5%
    9812.6120Broadband services for DSL connection19.5%
    9812.6121Copper line based19.5%
    9812.6122Fibre-optic based19.5%
    9812.6123Co-axial cable based19.5%
    9812.6124Wireless based19.5%
    9812.6125Satellite based19.5%
    9812.6129Others19.5%
    9812.6130Internet/email/Data/SMS/MMS services on WLL networks19.5%
    9812.6140Internet/email/Data/SMS/MMS services on cellular mobile networks19.5%
    9812.6190Others19.5%
    9812.6200Data Communication Network services (DCNS)19.5%
    9812.6210Copper Line based19.5%
    9812.6220Co-axial cable based19.5%
    9812.6230Fibre-optic based19.5%
    9812.6240Wireless/Radio based19.5%
    9812.6250Satellite based19.5%
    9812.6290Others19.5%
    9812.6300Value added data services19.5%
    9812.6310Virtual private Network services (VPN)19.5%
    9812.6320Digital Signature service19.5%
    9812.6390Others19.5%
    1[9812.7000Other specified telecommunication services19.5%
    9812.7100Audio Text Services19.5%
    9812.7200Teletext services19.5%
    9812.7300Trunk radio services19.5%
    9812.7400Paging services including voice paging services and radio paging services19.5%
    9812.7900Others19.5%
    9812.8000Tracking and alarm service19.5%
    9812.8100Vehicle tracking and other tracking services19.5%
    9812.8200Burglar and security alarm services19.5%
    9812.8900Others19.5%
    9812.9000Telecommunication services not elsewhere specified]19.5%
  • Income tax rates on telephone, internet usage

    Income tax rates on telephone, internet usage

    ISLAMABAD: Federal Board of Revenue (FBR) has updated rates of income tax on usage of telephone and internet services by phone subscribers during tax year 2021 (July 30, 202 to June 30, 2021).

    The FBR issued Income Tax Ordinance, 2001 (updated June 30, 2020) after incorporating amendments brought through Finance Act, 2020.

    The FBR also updated following rates of collection of tax under section 236 of the Income Tax Ordinance, —

    (a)In the case of a telephone subscriber (other than mobile phone subscriber) where the amount of monthly bills exceeds Rs100010 percent of the exceeding amount of bill
    (b)In the case of subscriber of internet, mobile telephone and pre-paid internet or telephone card12.5 percent of the amount of bill or sales price of internet pre-paid card or prepaid telephone card or sale of units through any electronic medium or whatever form.

    Following is the text of Section 236 of Income Tax Ordinance, 2001:

    236. Telephone and internet users.- (1) Advance tax at the rates specified in 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.

    (3) The person issuing or selling prepaid cards for telephones or 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 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.

  • Mobilink terms FBR recovery action as unfortunate

    Mobilink terms FBR recovery action as unfortunate

    ISLAMABAD: A spokesman of Jazz (Mobilink) on Thursday said that the treatment of the Federal Board of Revenue (FBR) for the recovery of disputed amount through sealing the office was unfortunate.

    “Despite being the largest taxpayers, we are treated in an unfortunate way,” a company spokesman said.

    “While the government is making efforts to improve the business environment in the country, such drastic measures would unfortunately severely affect investment prospects,” the spokesman said in a statement.

    “We have received a notice from FBR yesterday for the recovery of a disputed tax demand and we have serious reservations on these alleged taxes.

    “The proceedings were carried out on plea of a tax recovery notice for a disputed amount from 2018 which is under legal proceedings.

    “Due to the drastic measures our corporate reputation and pride has been hurt and shakes the confidence of foreign investors of Jazz and others.

    “Despite being the largest taxpayers, we are treated in an unfortunate way.

    “While the government is making efforts to improve the business environment in the country, such drastic measures would unfortunately severely affect investment prospects,” the spokesman said.

    Jazz seeks resolution of the matter and has always been willing to conduct dialogue as well as rightful legal course to reach merit and right interpretation.

    “Jazz also assures its valued customers that despite the challenges, we will continue to provide uninterrupted services,” the statement said.

    Mobilink is Pakistan’s number one 4G operator and the largest internet and broadband service provider is amongst the largest taxpayers and the biggest foreign investors with an investment of over US$ 9.5 billion during the last 25 years.

    In the last 6 years alone, Jazz has contributed over Rs251 billion to the national exchequer in the form of taxes and duties.

    Jazz has always been a law-abiding corporate citizen and has been in the forefront for contributing to Pakistan’s economy in monetary and development terms, and as the market leader in telecom and internet services with over 63 million customers.

    The company has also discharged its social responsibility in floods, earthquakes, and recently in COVID-19 relief response worth over Rs1.2 billion.