Rs. 652.18 bln contributed in term of telecom taxes in four years

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ISLAMABAD, Oct 29 (APP): Telecom sector has contributed an
amount of Rs 652.18 billion to national exchequer in terms of
regulatory duties and taxes during last four years.
A higher contribution of Rs.243.3 billion was made during
2013-14 due to Pakistan Telecommunication Authority’s (PTA)
extraordinary deposits of Rs. 104.6 billion of total value of
3G and 4G spectrum auctions in April 2014.
In 2014-15, the telecom sector also contributed Rs.130.7
billion to national kitty in terms of activation taxes and GST.
An annual report of Pakistan Telecommunication Authority
(PTA) on Saturday said the sector contributed an amount of
Rs. 124.73 billion to national exchequer in terms of regulatory
duties and taxes during 2012-13, Rs. 243.3 billion in 2013-14,
Rs. 126.3 billion in 2014-15 and Rs. 157.85 billion were contributed
during 2015-16.
The report said GST collection by telecom operators stood at
Rs. 41.65 billion during 2015-16, down from 45.8 billion an year
ago. This GST collection from telecom operators once touched Rs.
60.1 billion in 2013-14.
PTA’s deposits during the report period stood at Rs. 34
billion, up from Rs. 7 billion a year ago.
Similarly, total funds collected from telecom sector stood
at Rs. 157.85 billion, up from 126.3 billion a year ago. Major
contributor for increase in telecom’s contribution towards national
exchequer included the proceeds from spectrum fee that PTA received
It merits mentioned here that the sector is a significant
source of revenue generation for government in terms of initial
and annual licence fees, initial and annual spectrum fees, Universal
Service Fund (USF) and Research and Development (R&D) Fund
contributions, Access Promotion Contribution (APC) for USF Numbering
Charges licence, application fee, etc, and taxes, including General
Sales Tax (GST), Federal Excise Duty (FED), SIM activation tax,
advance withholding tax (WHT), sales tax on mobile handsets, Customs duties and other taxes.