In a meeting yesterday, the CEOs of the telecom companies voiced about the government’s policies to Federal Minister of Information Technology Syed Aminul Haq.
According to knowledgeable sources in the telecom sector, the country is being pushed away from the digital age. And toward the dark ages by the policies of the State Bank, Finance Division, and FBR.
The Federal Minister and the CEOs of telcos spoke in-depth about the issues the telecom sector is currently facing yesterday.
The telecom sector claims that because of government policies, the sector is suffering and new investment is not coming into this sector. These policies are also having an impact on the IT sector as well. Because the telecom sector serves as the foundation for the IT sector and as the source of the majority of IT businesses.
Industry sources claim that the CEOs asked to contact the federal government to get the 50% withholding tax hike removed.
A 34.5 percent overall tax on telecom consumers. This included a 15 percent withholding tax and a 19.5 percent general sales tax.
Pakistan ranks second in South Asia for telecom taxation. It is one of the most heavily taxed telecom markets in the world.
Telco CEOs reportedly brought up the subject of industrial tariffs before the federal minister, according to sources.
The CEOs claimed that although telecom has been granted industrial status. Industrial tariffs have not yet been put into effect, which has led to rising operational costs. Users of telecom services are charged in rupees, but they must pay renewal costs in dollars.
Industry sources claim that the federal minister was also confronted by the CEOs of the enterprises on the non-opening of LCs in the industry.
The CEOs informed the Federal Minister that the operations of the sector are being hampered by the refusal to open LCs. As well as the refusal to import machinery for the sector.
According to the sources, Federal Minister Syed Aminul Haq promised to discuss the issues facing the industry with the federal government.
The import of equipment, spectrum fees, and industrial tariffs are serious issues of the telecom industry. These need to be resolved right away because the growth of the industry is a prerequisite for economic stability. And an increase in foreign exchange reserves.
The Federal Minister reportedly stated that the IT Ministry is working hard to address the issues facing the sector.
The Finance Ministry and the FBR have received recommendations from the MoITT on the industry. He promised that he would discuss the issues facing the industry with the Prime Minister as well.
According to additional sources, the CEOs of the firms thanked the Federal Minister. They also stated that the Ministry of IT and Telecom has consistently made serious efforts to address the challenges facing the sector.
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