Punjab Government has decided to make all kinds of the internet connections like 3G, 4G, DSL or any other form of internet, which is more expensive by imposing the 19.5% sales tax, when we checked.
Punjab Finance Minister did not mention this new tax in the budget speech but all sorts of the internet are imposed with the tax in Punjab at flat sales tax rate of 19.5%.
There is deduction of 14% tax for the internet services in Pakistan and it will take entire taxes on the internet to about 35%. The internet uses, who use internet below Rs.1500 per month, they are exempted from newly imposed sales tax. The mobile phone companies’ officials have confirmed that the new tax goes against the ambitions of digital Pakistan of the government. The new tax will be applicable from July 1st, 2017.
Pakistan is included in one of few countries, where internet is taxed. The tax has already been imposed in 2014 in Punjab previously but it has withdrawn it after the backlash. Pakistan has added 40 million new internet users during last three years. It is said that the new tax will put the caps on the exponential growth rates and it will also impact the economy of the country badly. Punjab has total population of 50% of the country and 56% of the internet users live in Punjab.
