KARACHI: The Pakistan Telecommunication Authority (PTA) has dismissed stakeholders’ requests about relaxation in taxes on telecom sector and withdrawal of five SIMs’ restriction on one National Identity Card (NIC).
Stakeholder requested the PTA that it should withdraw 10% Advanced Income Tax on the assignment of spectrum, withholding tax, sales tax and federal excise duty (FED) on usage of data services and should bring back the import/customs/import duties to the level of 2013-14.
However, in a response, PTA refused the suggestion, saying that the successful bidder/licensee would have to follow laws of the land including payment of taxes/duties. PTA was responding to queries and comments on information memorandum (IM) and license template for upcoming next generation mobile services (NGMS) spectrum auction.
Similarly, in a reply to a query by a stakeholder that after biometric verification system (BVS) there is no reason to keep the restriction on number of SIMs, PTA said orders of the Supreme Court of Pakistan would have to be followed.
Another stakeholder suggested that licensee should be allowed to build/operate its own fiber and related infrastructure for providing NGMS services; Licensee should be allowed to offer cloud-based services and undertake remote operation (core) to optimise use of the network elements and rationalise operational costs. It is worth mentioning that most cloud servers are based outside the territory of Pakistan; The licensee may be allowed to use its sale channels to authorise all activities connected with digital/data services including but not limited to dealing with online merchants; The licensee may be allowed to distribute TV and multimedia content and condition for major Pakistani shareholding need to be relaxed for NGMS licensee in order to allow distribution of permissible content.
In a response to aforementioned suggestion, PTA said that the existing licensing framework is under review, keeping in view the technological advancements and shift in provision of telecom services, as per the requirements of Telecommunications Policy 2015.
In a response to a suggestion, PTA replaced Section 2.2.1 of IM as the licensee shall ensure compliance with 3GPP standards and will have to take all possible measures while installing its network to ensure that the out-of-band emissions remain under the permissible limits.”