Telecom industry lists reasons why govt should reconsider taxing 5-minute calls – Press Release

— AFP/File

The telecom industry on Saturday poked holes into the government’s plan to tax people whose call duration goes past the five-minute mark.

The government plans on taxing such calls at Rs0.75 per five minutes.

The telecom industry has declared the proposed tax “unworkable” for the following reasons:

• The move could create problems for 98% of prepaid customers who enjoy bundle offers.
• New tax could then eventually put an end to bundle offers which are extremely convenient for the public.
• The tax could entice consumers to cut off calls five minutes earlier and call again.
• Call cutting will enable the consumers to save themselves from the tax deduction.
• The government will not get anything if the call is cut off.
• Additional tax will be a complication for telecom operators and a nuisance for the public.

Minister for Finance Minister Shaukat Tarin while addressing a session of the National Assembly to discuss the budget, said that speaking over a mobile phone for more than five minutes will be taxed at 75 paisas, but there will be no tax on an SMS and mobile internet.

Initially, the Finance Bill 2021-22 had proposed a Re1 tax on each call if the duration exceeds three minutes, Rs5 tax for per GB usage of internet and 10 paisas on each SMS.

However, in a post-budget press conference, Tarin had clarified: “We are not doing it at this point in time.”

He said the proposals had been opposed by the prime minister and the federal cabinet.

The post Telecom industry lists reasons why govt should reconsider taxing 5-minute calls – Press Release appeared first on CaymanMama.com | News.

from CaymanMama.com | News https://ift.tt/3h6WOQR