Karachi, April 8, 2026 – Pakistan Telecommunication Company Limited (PTCL) has revealed that it is contesting tax disputes worth Rs6.79 billion with provincial revenue authorities, primarily related to international incoming traffic, according to its Annual Report 2025.
The company stated that major tax demands have been raised by the Sindh Revenue Board (SRB) and the Khyber Pakhtunkhwa Revenue Authority (KPRA). The SRB has issued claims amounting to Rs4.417 billion, while KPRA’s demand stands at Rs2.374 billion, making up the bulk of the disputed amount.
PTCL has taken legal action against these claims. In the KPRA case, the company filed a writ petition in the Peshawar High Court, which granted a stay order against the show-cause notice. Meanwhile, the SRB case was initially decided against PTCL by the Commissioner Appeals. However, the company has filed an appeal before the tribunal, which has also granted a stay order, providing temporary relief.
In a separate matter, SRB assessed Sindh sales tax of Rs702 million on services provided to cellular mobile operators. PTCL has strongly contested the claim, stating that the department’s stance is not supported by evidence. The company has submitted detailed documentation to the Commissioner Appeals, and a stay has been granted. PTCL management and its tax advisors remain confident of a favorable outcome.
Additionally, the Large Taxpayer Office Islamabad issued notices under the Federal Excise Duty Act, 2005, for the period from July 2021 to June 2025, aiming to impose FED on franchise fees. PTCL has challenged these notices in the Islamabad High Court, which has granted interim relief. Currently, no demand has been enforced in this case.
The ongoing legal battles highlight the complex tax environment faced by telecom operators in Pakistan.