Sindh govt. decides to impose 19.5% sales tax on internet and broadband services. By this decision, Sindh has joined other provinces where sales tax is collected in the internet services.
The fees for 2 mbps connection was 1500 rs before the decision, and it will increase now. The companies were charging 2500 rs for 4mbps connection, and it will also increase.
In 2016, all domestic users were exempted from sales tax in the budget. The exemption remained effective in the following years, but now Sindh govt. has withdrawn from the exemption.
The decision will take effect from 1st July. The bills for the internet will increase 300 to 400 rupees.
Internet is playing a vital role in economic development. It opened a vast array of opportunities for youth. Almost every student uses the internet for support in studies.
The other leading use of the internet is for entertainment. People consume media through the internet, which opened new careers like Vlogging, video production, and independent journalism. Today almost every person look on the internet for the solution to the problem.
Due to all of this internet has become an everyday commodity. Connectivity is the need of present times. That’s why users pay for the internet.
The application of sales tax on the internet is a somewhat justified decision. Govt make sure the smoothness of business and regulates the internet providing companies. The collected tax will serve in the advancement of the infrastructure; it will also pay for the salaries of govt personnel working in the regulation.
The revenue of the telecom companies is estimated more than 400 billion rupees. And telecom companies paid 169 billion rupees in taxes last year. The telecom industry is contributing to the national exchequer. The recent imposition of the sales tax will add to the revenue of the Sindh Revenue Board, and Sindh govt. will become more able to spend on the welfare of the people.
Now, people all over Pakistan are paying the same amount of sales tax on the internet. Let us hope for seamless connectivity.