FBR deliberately delaying tax incentive package for Telcos

ISLAMABAD: Despite the direction of the Prime Minister Imran Khan, the Finance Ministry and Federal Board of Revenue (FBR) are deliberately delaying the approval regarding tax incentive packages for telecom companies.

According to the industry source, the Ministry of Information and Technology (IT Ministry) has proposed an abolishment of 12.5 per cent withholding tax on telecom services in a bid to attract investment and generate employment following COVID-19 pandemic in Pakistan, but Finance Ministry and FBR delayed in sending comments which led to further delay in taking decision by Economic Coordination Committee (ECC).

As directed by the Prime Minister to process the matter, ECC was informed that these proposals were shared with the FBR and Ministry of Finance for consultation as required under ‘Rules of Business 1973’. The chairman FBR and Finance Ministry were asked to submit their comments before August 5, 2020.

This Ministry waited for the comments from the stakeholders for more than fifteen days and issued verbal as well as written reminders saying that Secretary Finance and Secretary Revenue may give their views in the ECC meeting directly.

An Inter-Ministerial Committee (IMC) was constituted by the Prime Minister to review taxation issues related to Telcos Sector with a view to facilitate online education and health services.

Three telecom companies have informed about their contribution and CSR in view of COVID-19. They have also mentioned in meetings that telecom sector is an area which has not been provided relief during COVID-19 by the government as compared to other sectors of economy.