KPK Loses Billions Of Income To Earn 50 Crore

KPK Loses Billions Of Income To Earn 50 Crore|

KPK Loses Billions Of Income To Earn 50 Crore|

ISLAMABAD- Provincial Government of the North West Province of Pakistan, Khyber Pakhtunkhwa (KPK) has been collecting a tax for two years which contributes Rs.50 crore to the annual income of the province but is wasting a great opportunity of growth.

According to the correspondent of PakistanTribe, the KPK government is receiving 19.5% tax on internet. This tax is imposed on every internet user who owns an internet connection. According to a report from the association representing the interests of mobile operators across the world, Global System Mobile Association (GSMA), Pakistan comes at 4th place in regard with imposing taxes on Telecommunication industry.

Telecommunication companies hold the view that collecting more tax on this sector is ruinous for the economic development of the country. Not only that, but also it will handicap the government efforts of publicizing Broadband.

It is pertinent to mention here that Punjab government had also levied the same tax a few days back which was withdrawn amid the strong protests from digital media and the users. The imposition of this tax was severely criticized because of the fact that it would give a limited return while inducing a huge financial loss.

Well-aware sources in IT and Telecom sector of Pakistan told

, this will bring a 20% increase in internet users. The increased amount of internet users will induce more employment opportunities in the IT sector, and will also be a source of income.

Pakistan is considered as technology hotspot and this is the reason that introduction of 3G and 4G technology yielded 15 million users in just 1 year. According to the source, if the opportunities offered by the IT sector are utilized properly then it can remunerate heavily.

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