The Telecom Operators Association has made an urgent plea to the Special Investment Facilitation Council (SIFC) to eliminate the fines of PKR 100-200 million that have been levied on the telecom sector by the Federal Board of Revenue (FBR) under the Income Tax General Orders (ITGOs) for individuals who have not filed their taxes.
The association wrote a letter to the authorities, urging them to remove the “punitive measures” that were suggested in the Finance Bill 2024-25. In addition, they have sought a thorough examination and removal of the 75 percent advance tax imposed on mobile services for individuals who have not fulfilled their tax filing obligations.
The group contended that the suggested penalties of Rs. 100 million and Rs. 200 million biweekly for ITGO implementation, specifically aimed at non-tax filers, are discriminatory and inequitable. The telecom operators, who have no direct responsibility for guaranteeing tax filing compliance, are being unfairly penalized by these fines, as stressed. The group cautioned that implementing such severe measures may discourage international investment.
SIFC Should Remove Fines and Advance Tax on Non-Filers
The association’s request for the removal of these fines is likewise endorsed by the Senate Committee.
The group emphasized the difficulties in differentiating between tax filers who comply with the tax regulations and those who do not among Pakistan’s 180 million mobile customers, concerning the 75 percent advance tax on mobile services. They highlighted the ineffectiveness of the current system in implementing this provision and advocated for a thorough evaluation and elimination of this modification.
The association recognized the collaboration of Finance Minister Muhammad Aurangzeb and the Chairman of the FBR on this issue. They affirmed their unwavering dedication to supporting the FBR in attaining its objectives to the fullest extent feasible.
After considering the difficulties mentioned and thoroughly discussing these actions, the association determined that the suggestions in the Fiscal Bill 2024 are unjustified. They demanded the prompt removal of these suggested modifications from the Finance Bill 2024-25 owing to time limitations.
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According to reports, the SIFC has called for representatives of telecom providers to discuss this subject. The group is optimistic that the discussions will result in a favorable resolution that answers their concerns and promotes the growth and sustainability of the telecommunications industry.
