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Still no action to reverse Internet Taxes despite CM Shehbaz’s directives

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Although several promises have been made to reverse of 19.5% internet sales taxes, which were imposed by provincial government, the implementation has not been taken place as yet.

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Last month, the Punjab Chief Minister Shehbaz Sharif had directed his subordinates to take back the increase of tax on internet sales. But it seems that a press release saying CM stressed telecom operators to pass on the relief to consumers had been issued from his office.

Earlier, the finance minister of the province had also announced the reversal of the imposed taxes even before the CM’s official announcement.

But even after one month of the announcement from CM, the Punjab Revenue Authority is still not take any action to reverse the raised taxes.

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“We don’t want to speculate, but it seems that bureaucracy is beyond the control of CM or maybe this was just a planned political statement with PRA on-board to gain some political mileage,” an official in mobile phone company on request of anonymity said.

The official expressed that such behaviour from the Punjab Government is not civil and can’t be understood by common people.

Meanwhile, cellular companies have started charging 19.5% GST from consumers in Punjab adding to 14% FED that was imposed by federal government.

An official from cellular company speculates about the situation in various manners and said that one telecom player was severely affected by 3G and 4G uptake, and there is good opportunity that it is influence the Punjab government for not taking the imposed taxes back.

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