Cellular Operators assure government to withdraw court cases

Proposals shall be prepared for withdrawal of withholding tax for 90 days as a relief for cellular consumers during this situation in addition to the tax harmonization between Federation and provinces regarding FED/GST

ISLAMABAD: The Cellular Mobile Operators (CMOs) Monday assured the government to withdraw all litigations regarding late payment fees on disputed license renewals subject to a timely issuance of policy directive for auction of spectrum.

This assurance was given during a high level meeting ‘Digital Pakistan’ held here today that also considered the requests of CMOs regarding harmonization of taxes, duties on handsets and policy directives for auction of frequency, one of the participants revealed to Newztodays.com.

The meeting chaired by Shoaib Siddique Secretary IT & Telecommunication and was attending by the members of Digital Pakistan.  They discussed the agenda of the meeting at length and decided to further deliberate on the issues pertaining to CMOs.

On behalf of CMOs, a representative apprised the meeting that telecom industry is facing enormous difficulties due to COVID-19 and the ministry as well as Pakistan Telecom Authority (PTA) should look into the issues one by one particularly taxes, duties and policy directive for auction of frequency along with the freezing of deduction of USF and R&D funds for at least six months.

CMOs representative further said that federal government along with provincial governments should devise a taxation policy that it should be harmonized but also beneficial for the industry as well, the same official said.

About the duties on imported handsets, he continues to plead that the duties should also be cut down drastically as it is hurting the revenues of the industry. On litigation with the Federal Government on auction of frequency previous done in the tenure of PML-N. They (CMOs) assured to withdraw it if the telecom industry given at least two-year in advance about the issuance of policy directive as it is done for new policy directive for auction of frequency for 2022.

About freezing of deduction of USF and R&D contribution from CMOs for six-month, they also requested the forum that the ministry should do a favour for easing out the liquidity crisis of the telecom industry.

The remaining issues of the CMOs will also be discussed in next marathon meetings on Digital Pakistan for final conclusion to be submitted with the prime minister for approval.

According to government press release, in line with directions of the Prime Minister, Committee on Issues of Cellular Mobile Operators was formed to evaluate the issues of Cellular Mobile Operators and formulate recommendations for onward submission to the Prime Minister’s Office including settlement of licence renewal matters with cellular mobile operators that shall help the goverment in valuable income generation in the current crisis situation.

Matters related to, additional spectrum allocation in Pakistan and AJK & GB, mutually agreed license renewal frameworks, tax rationalization, Right of Way (RoW) and reduction of NADRA Biometric Verification Charges were discussed during the meeting.

During the meeting, NADRA was requested to reduce charges of biometric verification of SIM especially in view of this situation resulted after COVID-19 in the country. Representative of NADRA sought sometime to discuss the matter with its Chairman and Board. The Chair directed NADRA to give its version in this regard next week. Ministry of Industries and Production agreed to the proposal that Telecom sector should be given functional Industry status.

The telecom operators shared serious interest in additional spectrum auction in Pakistan and AJK & GB to facilitate quality mobile broadband services necessary assist people especially students and professional to work from home and comply to COVID_19 related advisory. The Chair emphasized the need for urgent availability of required spectrum in Pakistan and AJK & GB and that Ministry of Kashmir Affairs & Northern Areas has already been sensitized to take lead on the matter for their respective areas in line with applicable laws.

It was decided that proposals shall be prepared for withdrawal of withholding tax for 90 days as a relief for cellular consumers during this situation in addition to the tax harmonization between Federation and provinces regarding FED/GST. The Chair directed PTA and telecom industry to work together to firm up proposals regarding data pricing to avoid abuse of service.

The meeting was attended by senior officers of the Ministry of IT, Cabinet Division, Ministry Finance, Ministry of Industries & Production, Federal Board of Revenue , representatives from PTA, NADRA and Cellular Mobile Operators.

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