These Are All of the Taxes and Tariffs Associated with Cellular and Mobile Services
The Pakistan Telecommunication Authority (PTA) has released the current cost structure for SMS, internet, and voice calls offered by cellular mobile companies across the country.
Basic Pay As You Go (PayG) rates for data services, according to the Authority, start at Rs. 3.3 to Rs. Pay As You Go (PayG) basic voice call rates start at Rs. 5 per MB.3.2 to Rs. 3.6 per minute. The cost of an SMS can range from Rs. 2.15 to Rs. 2.5 per message, and it only applies to those who are not enrolled in any particular bundle or package.
Mobile top-ups offer substantial tax benefits to consumers. Only Rs. 86.96, or Rs.. 100 card load because of a 15% Withholding Tax (WHT). Furthermore, each call, SMS, and data session is subject to a separate 19.5 percent General Sales Tax (GST), which normally costs consumers Rs. 14.190. Thus, a single card load of Rs. 100 has a total tax burden of Rs. 27.233.
The PTA affirmed that these taxes aren’t just for balancing loads. All individual usages and subscriptions to packages, bundles, or offers are subject to GST at a rate of 19.5%. Both prepaid and postpaid services are subject to the same tax structure, which affects a wide range of users irrespective of the type of subscription.
PTA requires operators with Significant Market Power (SMP), like Jazz, to obtain prior clearance before raising tariffs or launching new packages in order to maintain regulatory control. These operators must provide thorough plans that include industry comparisons, consumer effect analyses, and reasons.
Ufone, Telenor, and Zong are examples of non-SMP carriers that are permitted to independently determine prices; however, all operators are required to give customers at least seven days’ notice before making any adjustments. Although PTA did not provide a precise date for the most recent rate increase, it did affirm that all tariff proposals from SMP operators are assessed in light of industry trends, inflation, and operating cost justifications.
