Tax on Mobile Calls to Take a Heavy Toll on Lower Class
There would be a tax of Rs 0.75 on calls over 5 minutes and Rs 1.50 would be charged on calls exceeding 10 minutes
Finance Minister Shaukat Tarin announced retainment of tax on mobile phone calls that is expected to generate a revenue of Rs 15 billion but would hit hard the lower class. The SMS and internet will remain tax free however there would be a tax on phone calls of duration more than five minutes.
The Senate Standing Committee on Finance reviewed the finance bill and some 180 recommendations put forward by the senators.
The panel forwarded some 114 recommendations to the National Assembly after amendments.
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All senators kept opposing the tax on mobile phone calls but the revenue officials asserted that it was included in the finance bill by mistake.
Now, the finance minister has finally announced that the tax would be part of the fiscal budget 2021-2022.
How will it result?
The top officials of two cellular companies told News360 that the tax on mobile calls would add to the expenses of lower class.
They told there would be a tax of Rs 0.75 on calls over 5 minutes and Rs 1.50 would be charged for calls exceeding 10 minutes.
They added that the callers would have to additionally pay up to Rs 4.50 on a half-hour call and Rs 9 on a call exceeding an hour.
The officials said that it would also make things perplex for the service providers too as there are different methods to make call bundles and packages.
They added that the collection of taxes on different slabs would be a complex task.
The officials of two private network providers said that the tax would directly hit the people living in urban areas for employment and rely on mobile phone calls to talk to their loved ones living miles away in rural areas that are without internet facilities.
They added that people residing in urban areas make long-duration calls to their families and relatives once or twice in a week.
There are several remote areas in all provinces where there is no internet facility and they could not make a call on WhatsApp or other such services.
The officials told News360 that the tax would also take a heavy toll on bank customers who make calls for redressal of their complaints that usually exceed 10 minutes.
