20 paisa levy on SMS Cellphone operators to approach government

[Khurram]

SLAMABAD, June 16: The government expects to tap Rs100 million daily from the new twenty paisa tax imposed on SMS but the cellular phone companies said it would bring down their revenue as a result of decline in messaging.
They have decided to approach the government to express their concerns over certain measures taken in the budget 2009-10.

According to official data, Pakistan has more than 92 million subscribers, spread over sixty per cent of the country’s area and there are around 500 million SMS traffic in the country daily.

Sources in the industry said that the 20 paisa tax on each SMS would deal a serious blow to SMS users.

“SMS is also the best medium of communication for around 150 million special persons who cannot speak or hear,” said an executive of a leading mobile company adding that many companies have even launched packages offering SMS at even one paisa per SMS.

“But the new tax would jack the rate of SMS,” the executive said adding that the higher cost would result in low usage by the subscribers.

He referred to the report by the Pakistan Telecommunication Authority (PTA) that revenues from the cellular industry declined by around Rs4 billon in 2008-09 after call rates were increased in the last year’s budget, even now the subscribers would reduce their spending on the calls and the SMS, he added.

Sources in the industry said that a high level delegation belonging to five operating mobile phone companies are expected to meet senior government officials in near future to express their concern over the budget.

“In absence of a minister for IT and telecom, it is difficult to say whom the delegation would meet,” said a senior official of a cellular company adding that the new 0.5 per cent turnover tax would have a serious impact on the financial health of the cellular companies. The industry was also concerned over high taxes on the telecom sector, as the general sales tax (GST) on the mobile services was still 19 per cent and the cellular industry had been demanding equal treatment as far as taxation and duties are concerned as the same on all other products is 16 per cent.

“Besides, the subscribers pay ten per cent withholding tax on making mobile phone calls, this mean a person can talk for only Rs71 after loading Rs100,” said another executive adding that the government has to realise that mobile telephony was not a luxury but a basic need of ordinary citizen.

Expressing concerns over the imposition 0.5 per cent ‘Turnover Tax’ on the gross revenues of the company, sources in the industry said that the increased taxation and an additional levy would lead to reduced investments in telecom sector.

20 paisa levy on SMS Cellphone operators to approach government

[waqas]

i think imposition of tax on sms use ......... is a gud idea ........... coz it would promote purposeful use of text msg.

however the tax @ rs. 0.2 per msg is too high....... considering the tax already imposed......

govt shud consider to revise the tax rate

[--B@b@ Ki Guriy@--]

Bohat acha Kia.... Is se bhi zydaa hona chahiye.

[waqas]

Bohat acha Kia.... Is se bhi zydaa hona chahiye.

u selfish............ creature

i think u dont do sms.............lols

[--B@b@ Ki Guriy@--]

Mujhay bohat fazool Kaam lagta hay sms aur email kerna......! Main ager ghlati se kise ko jeldi sms ka reply ker don tu unhain yaqeen nahi aata....! tasdeeq kertay hain k yah main nay hi kia hay yah kise aur nay ker dia.....!

bass mujhay Koi Interst nahi aise kamon main aur bohat sakhat bore aur mushkil lagtay hain.

[momina]

mr. waqas u r right impose of tax is right but percentage is not right...
may be pakistan,s young generation pay attention on other useful hobbies....... like the solution of electricty problem...etc..
but i think it all done intentionly ..........our last goverment work alot for reduce the call rates & sms .definatly for his any kind of benifit now our new goverment feels its the wastage of money or time . no doubt its true but they r not doing it for our benifit . hope u understand who will gain.......?

[waqas]

@ momina

i am agree wid u .......... except

govt is doing it 4 increasing tax collection ............ tax authorities are least bothered about social implications

[waqas]

Mujhay bohat fazool Kaam lagta hay sms aur email kerna......! Main ager ghlati se kise ko jeldi sms ka reply ker don tu unhain yaqeen nahi aata....! tasdeeq kertay hain k yah main nay hi kia hay yah kise aur nay ker dia.....!

bass mujhay Koi Interst nahi aise kamon main aur bohat sakhat bore aur mushkil lagtay hain.

its ur personal views ........... but in professional life sms has its worth ......... u communicate effectively through it ........ further its quite cheap as compare to making call

as far as excessive texting is concerned ......... u r rite

[Khurram]

If we compare other countries our sms rate is very very cheap.