Daily Times

Sir: In response to a proposal by the Punjab government to impose additional taxes on internet usage, I want to convey my apprehensions. The proposal to impose Federal Excise Duty (FED) and General Sales Tax (GST) on internet services is appalling to say the least. As a subscriber, I am already being heavily taxed on necessities, i.e. voice calls and SMS, not to mention the added tax I had to pay to get my SIM card. Instead of providing relief to consumers in the form of tax cuts on the combined 38 percent tax we are already paying under FED, GST and advance income tax on telecom services, the government has had the audacity to suggest the imposition of further taxes, and that too on a service that is vital for the growth of the country’s economy during the digitalised 21st century.

If the federal government follows the Punjab government’s thinking, the progress made during the past year through the 3G/4G implementation will go to waste. In one year alone, 10 million mobile phone users out of the total 133 million have shifted from 2G to 3G/4G. A lot of local industries, let alone individuals, have benefitted from this mobile internet revolution, the e-commerce industry being a prime example.

The mobile internet service industry, at the moment, is at a critical juncture. The government should provide incentives to the masses in a bid to ensure that more consumers start utilising high speed internet for a better tomorrow. Burdening them with an ‘internet tax’ will greatly hamper progress, while it will create a greater divide between the haves and have-nots of our society.

UMER BIN DAWOOD

Karachi