Pakistan Networks Meet with Minister to Discuss Tax Issues
Published on: 18th May 2014
By: Ian Mansfield
The CEO's of Pakistan's mobile networks met with the government's Finance Minister Ishaq Dar last week to discuss unresolved tax issues following the recently completed radio spectrum auction.
The government said that the mobile networks have to pay a 10 percent advance tax under Section 236A of the Income Tax Ordinance 2001 on their radio spectrum bids.
The mobile networks have agreed to the payment, but that still leaves some other tax issued unresolved, especially the tax on replacement SIM cards. There is also an outstanding issue of how a withholding tax is collected, and excess payments later refunded to the mobile networks.
Minister Dar said that he expects the outcome of the spectrum auction will lead to the creation of 900,000 jobs in the economy over the next few years.