Finance Minister Confirms Huge Tax Relief for Telecom Users

Industry

A relief package for the Telecom sector was confirmed today during the press conference and Minister Tarin gave the reassurance that the taxes on the sector would be reduced in the upcoming budget.

The government is set to announce relief packages for the Telecom sector in the budget 2021-22, including the status of the industry, reducing the advance income tax on mobile phone users from 12.5 percent to 10 percent, and further reducing it to eight percent in 2022-23, federal excise duty from 17 percent to 16 percent, abolishing Rs. 250 on SIM cards, and reducing services tax on telecommunication companies from eight percent to three percent.

The IT and Telecom sector is currently growing at 48 percent, and Pakistan can achieve even higher growth in 10 years. India had 1 billion dollars exports from the IT sector in 2001 which increased to $100 billion by 2010. Pakistan can achieve at least 40 percent growth in 10 years, he added.

The minister stated that incentives will be given to the IT sector for the growth of exports and the creation of jobs.

Source: Pro Pakistani