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ISLAMABAD: Pressure is mounting on the government for the withdrawal of Federal Excise Duty (FED) on the cellular calls as the GSM Association that represents the interests of mobile network operators worldwide too has asked the finance minister to waive this new duty.
Julian Gorman, GSMA’s head of Asia Pacific, said that the additional FED will have a negative impact on demand and perspective of development for the mobile sector.
The GSMA or Global System for Mobile Communications, has written a letter to Finance Minister Shaukat Tarin urging him to consider the removal of Rs0.75 FED per voice call exceeding 5 minutes.
“This new levy creates uncertainty while the mobile sector is planning long-term investment as part of planned spectrum auction presenting a significant risk for the government achieving the Digital Pakistan Vision,” Mr Gorman said.
He recalled that over the last years, the Government of Pakistan and the mobile sector have engaged in a dialogue to reduce the mobile sector taxation in order to boost Pakistan’s transition to a digital economy.
“However, we wish to express our concerns regarding the introduction of a new levy in the Finance Bill 2021-22,” Mr Gorman said.
He added that the telecommunication sector was the key enabler for social and economic growth and these tax reforms will contribute to spread the benefits more widely within society.