Telecos have decided to increase their tariffs due to 19.5% taxation by the government. On 28^th May the Punjab government announced to levy taxes on internet. Which were later revoked by Ayesha Ghaus during her budget speech due to blackout by internet websites with reservations that it will hit the IT industry badly.

CM orders to withdraw taxes on internet while Telecos urge to increase prices due to taxation

However, later no SRO was issued for withdrawal and the FBR remained silent on this issue. Telenor, Zong and Warid have, therefore, decided to increase the tariffs of 2G, 3G and 4G networks. The taxes are applicable country-wide, despite the fact that taxes on internet in Sindh and KPK are on hold due to court orders. The taxes will be applicable till the courts hold these case and there is no final decision.

“This is why new tax by Punjab has turned out to be very crucial as our fight against taxes has only widened and it has become hard for us to litigate three provinces against internet taxes”, said one official of a cellular company.

He further added that customers shouldn’t complain telcos for this increase in 3G tariffs, but yes they can go to their government and protest against newly imposed taxes which are the main reason behind this revised tariffs.

But the CM of Punjab has recently come with his orders mentioning an immediate withdrawal of taxes. Now we don’t know for how much time the SRO for new order will be issued. CM Punjab and Umar Saif, Chairman PITB once again declared the reversal of internet and mobile data taxes adding that “Telcos must pass this on to the consumers”.