* Excise duty will be collected on telecom services in GST-value added tax mode
By Sajid Chaudhry
ISLAMABAD: The federal government is likely to impose 15 percent federal excise duty in the 2008-09 budget on 19 types of telecommunication services currently outside the tax net, official sources told Daily Times on Tuesday.
At present, the government imposes 15% federal excise duty on 17 types of telecommunication services. But the government is considering bringing all remaining telecommunication services under the federal excise net to generate additional revenue in the forthcoming fiscal year, to meet the enhanced revenue collection target to be set by the coalition government. The excise duty would be collected on these telecommunication services in general sales tax-value added tax mode (GST VAT-mode), the official added.
The telecommunication services currently within the tax net include telegraph services, telex services, telephone cards, installation of telephone connection, shifting telephone connection, restoration of telephone connection, conversion of telephone connection into subscriber turn dialling/non-subscriber telephone dialling, provision of telephone extension, changing telephone connection, and cost of telephone set.
The telecommunication services expected to be brought under the federal excise duty net include bandwidth services used for voice and video telecommunication, wireless telephone, video telephone, voice mail services, messaging services, short message services, multi media services, store and forward fax services, audio text services, trunk radio services, paging services, voice paging services, radio paging services, vehicle tracking services and burglar alarm services.