Daily Times

ISLAMABAD: Telecom operators are deducting Rs 365 billion annually on account of taxation from the pockets of the poor people of the country, but this amount is not reaching the national exchequer due to faulty system of the Federal Board of Revenue (FBR). This was told to the Senate Standing Committee on Information Technology, which met under the chair of Senator Shahi Syed at the Parliament House. State Minister for Information Technology Anusha Rehman said that the country was tangled in financial crisis due to irregularities of the Musharraf regime. The committee was informed that telecom companies deducted hefty amounts from the public on account of 10 percent services and maintenance charges, 18.5 percent general sales tax (GST) and 14 percent withholding tax (WHT). On this, Chairman Shahi Syed asked the FBR to make proposals for putting right the tax collection system without any further delay; otherwise stern action might be taken against the elements responsible. He said that if the FBR failed to improve the system, its reports would be sought from the finance minister. The IT minister told the committee the case of Pakistan Telecommunication Company Limited (PTCL) employees was in the court, and if they were given full pay and allowances for the pending period, the department would go bankrupt. Anusha Rehman reacted to the misperception that her ministry allocated Rs 500 million for the construction of a stadium in Sialkot. She said that it was a false and fabricated news item. However, the committee formed an inquiry committee to probe the matter. She regretted that the Senate Secretariat issued that false statement in its press release. Committee members Rehman Malik and Robina Khalid said that the mobile companies should also be held accountable for collecting such a huge amount in the form of taxes and not depositing in the national kitty.