Govt Announces Tax on Mobile Calls Longer Than 5 Minutes

Federal Finance Minister Shaukat Tareen on Friday announced a new tax on mobile phone calls longer than 5 minutes.

Tax on Calls — Govt Announces Tax on Mobile Calls Longer Than 5 Minutes.

During his final Budget 2021-22 speech, the Federal Finance Minister confirmed that there will be no additional tax on internet and SMS services.

However, there will be a new tax of Rs. 0.75 will be collected on mobile phone calls longer than 5 minutes.

The Budget 2021-22 initially proposed a tax of Rs. 1 per call if the duration exceeded three minutes and Rs. 5 per GB for internet usage along with Rs. 0.10 on each SMS.

However, the proposed taxes were opposed by the Prime Minister and the Federal Cabinet so they are not being implemented, said Shaukat Tareen.

The initial proposal sparked outrage among the public with people taking to Twitter and saying that “the budget killed Digital Pakistan Initiative.”

The widespread criticism led to Energy Minister Hammad Azhar clarifying the matter on Twitter regarding the proposed taxes. “The PM and Cabinet did not approve the FED levy on internet data usage. It will not be included in the final draft of the Finance Bill (budget) that is placed before parliament for approval,” he tweeted.

The PM and Cabinet did not approve the FED levy on internet data usage. It will not be included in the final draft of the Finance Bill (budget) that is placed before parliament for approval.
— Hammad Azhar (@Hammad_Azhar) June 11, 2021