By Asad Cheema
ISLAMABAD: Former President ICCI Shahid Rasheed Butt on Friday said telecom industry holds the key to national development but it is reeling under heavy tax burden.
Similarly, IT sector is also facing heavy taxation which is impeding its growth, he said. Talking to the business community, Shahid Rasheed Butt said that some telecom companies have increased price of their services which should be brought back by giving them tax relief.
He said that heavy incidence of taxation is hurting the telecom sector and it is impeding proper local and foreign investment in this promising sector. Poor population comprising majority of 167 million subscribers with no taxable income are paying unjustified telecom taxes while the rich get relief in the tax. The advance income tax of 12.50 percent is refundable but the facility is availed by the rich while the poor have no other option to pay it, he said.
The business leader informed that apart from GST, people are paying federal excise duty, activation fees, withholding tax, etc. He said that telecom sector is looking for government support, therefore, withholding tax on utility bills should be waived until December 2020 and relief should be provided so that it can stand on feet. This sector should be directed to improve their coverage and quality of service and introduce 5G without delay.
He said that Pakistan’s IT exports are hardly one billion dollars while Indian IT exports stand at 130 billion dollars and the Philippines is earning USD 26 billion from the same. It is estimated that the artificial intelligence market will be around 14 billion dollars within five years and preparations are necessary to benefit from it, he demanded.
