Government Increases Tax Percentage on Mobile Recharge

The government has announced a hike in the tax on mobile recharge and consumers will be charged an additional 15 percent withholding tax on each recharge. According to the sources, in addition to the withholding tax, General Sales Tax (GST) at 19.5 percent is also being charged on mobile services, after hiking in the tax the customers will get Rs72.77 worth of balance recharge of every Rs100 balance recharge.

Telecos have increased rates of calls and data packages

Cellular mobile companies have increased call and data packages, and with effect, Jazz, Zong, and Telenor have increased rates of calls and data packages. Jazz has increased rates of superload, all in one packages and data packages. Rates of Jazz monthly super load packages have been increased up to Rs.40. Similarly, rates of Jazz all in one (call+Internet) weekly packages have been increased up to Rs.30. Rates on weekly Internet packages have also been increased up to Rs.25.

Read more: Government Considers Revisiting IT Sector Tax Measures After Backlash from Telcos

The monthly super load package of Telenor has been increased by up to Rs.100. Similarly, Telenor has increased data packages up to Rs.50, whereas weekly all-in-one packages have been increased up to Rs.20. Zong has also increased super load packages up to Rs.50, data packages up to Rs.20, and WhatsApp package up to Rs.7. In this regard, text messages are being sent to consumers by various telecom companies informing them about the tax hike.

The hike in the tax will generate revenue for the government 

These telecom-related steps may generate the government between Rs30 billion to Rs33 billion in fresh taxes, equivalent to roughly a tenth of the Rs350 billion of additional tax receipts envisaged under the mini-budget. Meanwhile, the Ministry of Information Technology and Telecommunication had opposed the move to increase taxes on the telecom sector.

Source: Express Tribune