‘Punjab must clarify 19.5 percent GST on data usage’

LAHORE: All Cellular Mobile Operators (CMOs) on Friday asked the government of Punjab to clear the ambiguity regarding the imposition of 19.5 percent General Sales Tax on Data services in the province.
The Punjab government through a notification on May 28, 2015 imposed the 19.5 percent tax on the internet and data usage. However, the Punjab cabinet after pressure from the stakeholders has announced withdrawal of the GST, which was announced by the finance minister during the budget speech on the floor of the house. But, so far no notification of withdrawal of the tax was received to the CMOs who have to file their monthly tax return to the Punjab Revenue Authority (PRA).
The CMOs file their monthly tax return to PRA on 21st of every month. Now the June 2015 month return will be filed on July 21, but the CMOs are still unable to decide about submission of 19.5 percent GST.
In a letter written by the CMOs to Punjab Finance Minister Dr Aysha Pasha, they asked to issue a notification of reversal of the 19.5 percent GST on data usage at the earliest in order to clear ambiguity for the June 2015 month tax return filing.
“The industry believes that the decision will encourage the efficient rollout of high capacity mobile broadband (data) networks that will spur further investment and social-economic growth for the industry in general, but for the government and the people of Punjab in particular,” the letter stated.
When contacted, Punjab Finance Minister Dr Aysha Pahsa, said that the tax was revoked. “When cabinet had approved revoking of the 19.5 percent GST on data usage and announced on the floor of the house – then one should not be worried about it,” she said, adding that notification and issuance of gazette took some time in processing. She said that the CMOs should not be worried about the matter.
PRA Chairman Dr Raheel Siddique talking to The News said that after the Punjab cabinet’s decision, the tax was revoked with effect from the date it was implemented. The PRA did not get even a single day tax on data usage from the CMOs. He further said that the PRA has to recover around Rs12 billion from the cellular industry of Pakistan. He said that in case of any ambiguity, the CMOs can approach the PRA anytime. The Authority is ready to clarify any misconceptions on GST on data services, Dr Raheel added.