The telecom sector has asked the Federal Minister for Finance Miftah Ismail to reduce advance income tax (AIT) on telecom users from 15 percent to 8 percent.

As per the details, Miftah Ismail held a meeting with a delegation of the telecom sector comprising of Jazz CEO Aamir Ibrahim, and Telenor Pakistan CEO Irfan Wahab Khan.

They informed that AIT was reduced from 12.5 percent to 10 percent in the fiscal year 2020-21, with a commitment to reduce it to 8 percent vide Finance Act 2021. However, the move was withdrawn merely six months later, without giving due consideration to its long-term ramifications. Through the Finance (Supplementary) Act 2022, the AIT rate has been increased from 10 percent to 15 percent.

Sources said that Miftah Ismail assured the delegation that the government will provide maximum relief in AIT to the telecom sector.

Meanwhile, a handout issued by the Ministry of Finance states that the telecom delegation briefed the finance minister on the contribution of IT sector in the economic development of Pakistan.

The minister acknowledged the role of IT and telecom in the overall economic development of the country. Moreover, he assured the delegation of all possible support regarding taxation issues and emphasized making a greater contribution to the enhancement of IT and telecom-related exports.

The delegation also asked the minister to reduce the Cash Margin Requirements (CMR) from 100 percent to 10 percent in next year’s budget on the import of mobile phones. The State Bank of Pakistan (SBP) in April this year imposed 100 percent CMR on a number of items including mobile phones in order to curtail the unabated imports bill.

Source: Pro Pakistani