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Taxing Times: Govt. Imposes 14% Advanced Tax on Internet Across Pakistan

Internet, the very life-blood of nearly every business, most of all Tech sector, is being levied 14% tax across Pakistan. According to reports, the government is imposing 14% tax on the total internet bill amount all across the country.

The good news however, is that those users who file income tax returns, can claim this 14% at the time of filing returns. But, those users who do not can forget about this amount. For those users who are still confused about this new tax, this is different from GST (General Sale Tax). Provinces collect GST and it is non-refundable whereas WHT is collected by the federal government and the amount is refunded to the user on filing of their returns.

This is going to hit the internet subscribers of Sindh and KPK the worst, as they would end up paying both WHT (14%) and GST (19.5%) which is a whopping 33.5% or 335 rupees on a bill of 1000.

Mobile data users already pay 14% for the data services at the time of loading the cards. So there is no change on that front. However, still in early stage of implementation the ruling about the tax requires many aspects to be clarified.

Watch out for more details about it here.

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