ISLAMABAD: The government’s decision to impose an additional 75 paisa tax after 5 minutes on mobile call will now roughly cost Rs 2.72 instead of previous Rs 1.97 thus the FBR has estimated to collect Rs 20 to 30 billion through this new mobile tax.
The FBR has withdrawn taxes on food commodities and some other taxes with estimated revenue loss to the tune of Rs 80 to 90 billion. Now the government imposed 75 paisa tax on mobile call after 5 minutes and with this one move, the FBR is expecting to generate tax revenues of Rs 20 to 30 billion.
The FBR high-ups conceded that the tax would be imposed with effect from July 1, 2021, after approval of Parliament and enactment of Finance Act 2021-22 after the assent of President. The telecom sector is estimating that the FBR can generate additional tax revenues of Rs 15 billion with help of this new tax on mobile calls.
This is almost an additional 40 percent of tax on the mobile sector. However, the government will have to give some timeframe to bring changes into the billing software of mobile companies because it will not be possible to charge a new tax deduction mechanism with effect from July 1, 2021. Without bringing changes, the new tax cannot be charged under the existing billing mechanism.