Government of Pakistan has levied yet another round of tax on the nation, this time on the usage of Internet.

An advance federal tax of 14 percent has been declared on Internet users all over Pakistan, summing up to an extra amount of 14 percent to be paid on the internet services bill.

While Punjab has reversed its imposition of 19.5 % GST in the previous month, people in Sindh and Khyber Pakhtunkhwa will still be paying a total tax tariff of 19.5 percent GST and 14 percent withholding tax.

However unlike GST, this withholding tax amount can be re-claimed by the customers who file for the return.

While Internet Service Providers will be rolling out notifications to inform their customers for the recent tax enforcement, telecom companies are still uncertain if the tax will be applied for deduction on mobile date usage.

According to ProPakistan, teleco brands already deduct 14 percent advance tax on loading of mobile cards. Nevertheless, the probability seems high that even mobile users across Pakistan will be accounted to the new tax enforcement.

What do you think of government’s new tax imposition on internet services?

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