Sindh Government has announced that service tax on Telecom sector will be reduced from 19.5% to 18%, effective from 1st July 2015. This change is going to allow telecom service users to save Rs. 0.93 on every Rs. 100 card.
Taxes on telecom services in Pakistan are currently the 4th highest in the world.
After the National Finance Commission Award, each respective provincial government has the freedom to tax services and adjust them separately from other provincial governments.
The telecommunication industry has urged that the tax-rate for telecom should also be brought down by other provinces in the country.
They emphasized that the customers are the ones paying the taxes and the ones benefiting from the tax reductions will be the end users.
While saving Rs. 0.93 on a Rs. 100 card load is a very minute amount, the reduction is still a good gesture on the part of the Sindh government.
The reduction to 18% from 19.5% tax on telecom services will be in effect from 1st July 2015.