Govt likely to impose 15% tax on 19 telecom services


* 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.


So, when I'll load Rs.100 to my mobile, I'll get less than Rs. 85. :/


we already have 10% CED and 15% GST, now 15% FED. That is cumulative 45% tax.


Fruits of Democrashy...


[quote=", post:, topic:"]

we already have 10% CED and 15% GST, now 15% FED. That is cumulative 45% tax.

That’s 40%


lol ... That's the only way our economists in the govt. know to tackle an economic falloff? Amazing!


We are already paying 15% GST and 10% income tax on prepaid or postpiad mobiles. As general rule, excise duty only be collected on those itmes on which GST not collected. So, I hope on mobile, will not going to pay more than what taxes we are paying. I think out of those service, DSL may be come under excised duty umbrella.


well i was under the impression that govt. imposes Excise duties to curb down the excessive usage or control the usage of anything. But our govt. milks tax paying consumers instead of imposing taxes on luxurious imports and catching tax thieves.




I dont think so theg gona charg excie duty on such services on which sales tax alrady been charged.


why don't we hand over this country or give it on lease to any other nation, we have learnt from our past. we are not capable to operate a country. why we are making things more worst. :-??


I think this gona be political thread if it start talk about country. Is this allowed here?


Agreed . we are paying 25% Now... Come On.. What are they upto?

But I heard in Tv budget wud be Tax free?


yeah like always :(


Actual budget is when it applicable. What they present on tv is nothing but just few highlights of good good features. After budget actual impact of budget come into knowen to pakistani's.