CELLULAR mobile operators have asked the Government to abolish withholding tax on customers on recharging of their balance and suspend tax on data services by federal and provincial governments on a temporary basis till the Covid-19 fight continues. In a joint communication the Chief Executive Officers of Jazz, Telenor, Zong and Ufone they also demanded 50% reduction in Annual Regulatory dues with immediate effect to provide relief to the companies during these testing times. There is no doubt that telecom services are playing crucial role inthe economic development ofthe country andthey have assumed added significance in the prevailing situation when most of the population is confined to their homes and their only contact with the outside world is through telephone. Data and voice services have also become a necessity for businesses as employees of various companies and entities now work online from their home. State Bank of Pakistan has also asked banks to rely mainly on online banking to avoid social contacts in the prevailing environment. Therefore, the demand of the cellular companies for provision of relief is justified and the Ministry of Telecom, Ministry of Finance, FBR and PTA should consider their plight on an urgent basis. This would not be unusual as similar relief is being given to many other sectors to mitigate the impact of the situation arising out of the spread of the Coronavirus. Branded stores too asked the Government to suspend collection of all federal and provincial taxes besides slashing down the GST to six per cent for protecting their businesses from collapse. The demand of the telecom sector is also understandable as it is heavily taxed and exorbitant taxes are one of the major hurdles in the growth of telecom services. Minister for Education ShafqatMahmood while emphasizingthe need for online classes for students during prevalence of Coronavirus also talked about poor connectivity, a problem that can be taken care of if necessary incentives are provided to the telecom sector
