The Khyber Pakhtunkhwa government is considering to reduce internet taxes, which amounts up to 19.5% of revenue taxation on special high speed online solutions and broadband services throughout the region.
The news comes from sources which have revealed that Information Technology Board Khyber Pakhtunkhwa has selected counsel. The set up will then be sent to the Primary Reverend Pervez Khattak for last acceptance before it is applied (after approval).
As of now, the following points have been included in the draft:
Data services to be excused from product sales tax on set online for utilization under Rs 2500 monthly and for up to 8 megabits per second (Mbps) connections
Data services are to be subject to taxes at the existing amount of 19.5 % product sales tax on internet for utilization above Rs 2500 monthly and for usage of above 8 Megabyte per second connections
Data solutions to be excused from product florida sales tax on the cellular online for utilization under Rs 2500 monthly.
To this, Managing Director (MD) Information Technology Board Dr Shahbaz Khan said; “The last plan has been presented for acceptance to Primary Reverend Khyber Pakhtunkhwa government for changing the sales tax on world wide web. After the acceptance of Primary Reverend 19.5 % sale tax on the Internet would be improved,”
This shift will encourage users to shift to 3G and 4G solutions with more ease, bringing more awareness to the region. Not to forget that Punjab has already reduced these taxation on wireless and cellular online.
According to ProPakistani, experts tax amount on telecommunications solutions in Pakistan is around 40 % which is one of the highest effective tax rates in the world. In addition to taxation, 19.5% GST on special high speed online information solutions simply increases the pressure on consumers.