Federal Government Implemented 14% Withholding Tax on Internet across Pakistan

Federal Government Implemented 14% Withholding Tax on Internet across Pakistan

Islamabad (July 8, 2015) – Government of Pakistan has forced 14% advance tax on web usage. This is a federal tax, and is imposed for Internet users in all provinces of Pakistan. Newly imposed tax falls under as a Withholding Tax (WHT), which supposed to gives relief to digital consumers of reclaiming at the time of filing of returns. If someone is return filling citizen then he expects to reclaim it otherwise forget this money forever.
It is shocking for digital customers that some days ago Punjab Govt. has withdrawn 19.5% tax on internet and later on Federal Govt. has imposed it again with some alterations. Internet provider companies have started to inform their customers about this new tax. It is not sure at this stage that whether mobile companies will adjust this tax to data bundle prices or not. Because mobile phone users already endure 14% advance tax through crediting the balance or load.
It is pertinent to mention here that the residents of province Sind and KPK have to bear a massive burden of taxes i.e. previously imposed 19.5% General Sales Tax along with this new 14% advance tax as WHT, a total of 33.5% tax on internet usage.

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