Withdrawal of Tax on SMS
Cellphone operators have finally decided to approach the finance ministry to seek withdrawal of the recently imposed 20 paisa tax per SMS, which will hinder growth of the industry.
It is learnt that cellular phone operators have started evolving a strategy and are preparing to make a presentation to the finance ministry in this regard. Before going to the ministry, top officials of cellular phone companies will separately meet with each other in a couple of days to make their case strong. Officers of one of the operators are also considering to approach the Competition Commission, as, according to them, the government has offered extra support to one of the companies at the cost of the whole industry.
The government, in the federal budget for 2009-10, has levied 20 paisa tax per SMS, which is in addition to the rate specified for the telecommunication sector. At present, all mobile phone companies except one are offering bulk SMS packages, which are seen greatly favourable for consumers. However, the new levy will reduce revenues of operators, and rates charging process will also become complex as most of the operators are offering unlimited SMS at a fixed rate.
According to data collected from the industry, out of 90 million registered cellular phone customers, over 45 million use the SMS service, each sending an average of seven SMS daily. Daily SMS traffic in the country is estimated at around 315 million and monthly traffic at around one billion.
The Pakistani market is very responsive to SMS-based packages. There has been tremendous growth in SMS usage, estimated at 30 per cent in recent years.
[via business recorder]
We are already late as 3G has been introduced in the rest of the world, including a few of our neighbours including India. How can we look forward to 3G services in Pakistan when the basic data service “SMS” is being taxed more than its cost? Government should have discussed such a decision with PTA before announcing it in the Budget 2009. PTA should take a strong stand on this motion as this will hinder growth in the Telecom industry of Pakistan.
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[...] they’re hopping mad, and are planning to meet with the finance ministry to petition for the withdrawal of the tax. The telecom providers are going to point out that it’s absurd to tax a service more than its [...]
http://telecompk.net/2009/06/17/withdrawal-of-tax-on-sms/
Kakaballi – a tool can be used in many different ways. There are many studies which have shown the positive impact of mobile phones. Of course there is a lot of trivial usage as well. People are like that, give them anything and they will use it in all kinds of ways.
Telecom industry has created a lot of jobs for Pakistan. It is our shortcoming that we did not create manufacturing of handsets in Pakistan. Perhaps it has to do with our poor infrastructure (no roads, no electricity).
Telecom has no ‘real’ output. If we want to progress, we need to improve on ‘real’ industries rather than this one which is causing billions of dollars of outflow of funds for importing cell phones and telecom equipment. The telecoms companies are mostly multinational and repatriating their profits as well.
Everybody knows what sms are being used for today. Sending jokes, poetry and cheap romance.
dear all
i totaly disagree with u sms & telecom phobia has runied our nation cheeper rate not only destroyed the minds of young genration but also have become a most eritating .every one is in unknown depration due to moble connections .this is a v good fecilty which is bing misused .rates should be revised and sms packages must be stoped by govt .it should be used for positve activets rather then an entertainment
yup we should quit if dis new tax is imposed
i m a student of engineering and during my degree i use this servic for my study purpose as well……dis new tax has also a bad impact on students future as well bcz mainly youth use dis service for communication……dis tax should b withdrawald or else we should quit using this service……if zardari cant give us relief den he cant have the income by imposing dis tax…….get up youth n as a protest quit using dis service till the new tax is with drawald
new gov shd go to the bloody helllll………………it has planned to ruin us…………..zardari ne tax lga dia sms pe coz us ki betion k pas kpray khtm ho gay thay…………….he is a son of a bitch………………..go zardari go……………….c’mon students get up zardari ass hole ne sms pe tax lga kr hamara budget kharab kia hay…………..go to hall zardari………
As salam o alaekum. friends that really shame action from the end of government.i am a student of master standard.its really true that sms communication is most cheapest way for the middle and lower middle class also for the poors.i too really utilize this way .whole my student life.because i really can’t accord the other coslty ways of communication.my request to the government to please reverse its decition of 20% tax on each sms.if this will implemented than a countless of students will not have the cheapest source,because that have become use to for this way of communication .
zardari is kutta thats it!!
Aslamualikum,
Do any body know, whether GSM companies are going to fetch up sms packages from 1st July?
Take Care
Allah Hafiz
we the youth of pakistan should take take some serious step against ths tax…or else v wil end up paying zardari’s hotel bills n our dear gillani’s dressing…ths isn’t fair…come ppl of pakistan come up with some mind blowing idea of teaching ppp a lesson for messing up with us
Tax on SMS should be remove.
saans lene pe tax lena baki reh gaya hae
I think ek waqat aysa aye ga k Government kahay ge k toilet may bar bar janay par be tax lagoo
Ya hina i agree wid u just say no to this gov… we miss president Musharraf he was the man of youth and man of spirit….
SAY NO TO TAX ON SMS…. JAB SY YE GOV AYI HA SAB KA JEENA HARAM KAR RAKHA HAI ….. GO ZARDARI GO!!! SEEK ASYLUM IN DUBAI!!!
i must say, the Govt. wants to take advantage of even a single thing… if possible they would have imposed taxes on the beggers too!! after all in this fast growing telecom market era, you have to pay 20paisas tax on each sms you sent!! i mean thats awsome on govt. side you know!! ahhh!! what else they can do….they want to even collect tax on each breath we take!!! Great Govt……..lolzzzzz
no sir, i do not agree with you as SMS is a means of communication. and mostly people use it for communication. i think most of the people will have seen the scandal of pakistani ministers and Mr. Zardari in the foreign country, they were throwing dollars on an indian dancer, and stayed in a room having daily charges $5000/- per night. they are imposing this tax just to fill their bank accounts nothing else.
@A.Q.Ghouri
I don’t think text messages are a luxury. During my student life, text messages were considered a cheap communications mechanism, while voice calls were considered a luxury.
Salam Everybody..
Its very Strang that this step has been taken by The Govt.
i accept and belive that SMS lies in Entertainment and Luxury category.. but this is one of the Luxury that a Educated Person can have in such a tensed and uncerten Country Condition…
So I Support ur views that this Step should be taken back..
i hope they get approval
[...] This cup of tea was served by: State of Telecom Industry in Pakistan [...]
If I did not know anything, I’d say that this is the most effective way to kill one of the few growing industries in Pakistan. There’s no electricity, physical infrastructure is scarce … now the government wants to go after telecom? unbelievable.
Well after hearing this shocking news, I feel so bad. I post on lot of sites & blogs that this act is not good. 19% GST, 10% Advance Income Tax & 5% Service charges is too much, our Goverment impose more Tax on Basic Things, they cannot provide Low Cost Flour, Oil, Rice & Vegetables because they dont have control to take control on their prices, but Telecom Sector is the “Easy Victim” for the Government.
After taking the reviews of the people, I took a result that Mostly SMS are against Government, so the Government take this cheap step.
I took very strong stand against this step and I am complaining alot about it. I also heard that in Philipine the Govt. of Philipine imposed Tax on SMS but the people take strong stand and then Govt. of Philipine take back their deceision.
I request to this Nation that Wake Up now, Fight for the Right, not with swords and Bullets, but with your Words.
Thanks for your time
ALLAH HAFIZ
REHAN AHMAD (SONU)
av00001@yahoo.com
Collecting taxes from IT industry is the most easiest thing for FBR so it simply applies more taxes on it. Every thing seems going back to square one. Lets see what happens next…