In a meeting with Federal Minister of IT Syed Aminul Haq yesterday, the CEOs of telecommunications businesses voiced their worries over government policies.
According to well-informed sources cited by ProPakistani, the telecom industry claims that the Finance Division, FBR, and State Bank policies are dragging the country into the dark ages rather than the digital era.
According to sources inside the telecom industry, CEOs of telecommunications companies met with the Federal Minister yesterday to address the business’s challenges.
The telecom industry claims that due to government policies, not only is the telecom industry suffering and no new investment is entering this sector, but these policies are also affecting the IT industry, as the telecom sector is the backbone of the IT sector and the majority of IT businesses rely on telecom and data services.
According to sources within the business, the CEOs urged the federal minister to speak with the federal government about rescinding the 50% withholding tax rise.
The CEOs reportedly informed the federal minister that with an overall tax rate of 34.5 percent on telecom users, including a 15 percent withholding tax and a 19.5 percent general sales tax, Pakistan is one of the most heavily taxed telecom markets in the world and the second most heavily taxed in South Asia.
According to reports, CEOs of telecommunications companies have also discussed industrial tariffs with the federal minister.
The CEOs stated that the telecom industry had been granted industrial status, but an industrial tariff had not yet been introduced, resulting in rising operational expenses. Telecom carriers charge users in rupees but must pay renewal costs in dollars.
According to industry insiders, the enterprises’ CEOs also highlighted the telecom industry’s lack of LC openings with the federal minister. The CEOs informed the Federal Minister that the non-opening of Letters of Credit and the non-import of telecom sector equipment is affecting the industry’s operations.
