In its tax recommendations to the Punjab Revenue Authority (PRA), the OICCI recommended that the sales tax rate on telecommunication services be brought in line with other services. It implies that the sales tax rate on telecommunication services should be equal to the General Sales Tax rate on services in order to bring all sales tax on services rates into alignment. According to the report, this will enhance tax collections by enabling telecom operators to exploit Pakistan’s lower-income population.
OICCI Urges Punjab Govt to Reduce GST on Telecom Services
Life insurance and health insurance are also free from the definition of service, according to the OICCI, which believes that they should be permanently included on the list of exempted services due to the fact that they do not fit within the scope of the definition. According to the OICCI, a policy board should be established to ensure that policies are synchronized, that taxable services are harmonized, that the basis of apportionment of revenues is established, and that all anomalies and disputes between the laws of the various revenue boards are resolved. It is recommended that “toll manufacturing” be removed from the list of services in order to avoid double taxation, as it is taxable under the Federal Sales Tax. The Withholding Sales Tax Rules should be changed so that withholding among registered service providers and registered service recipients is consistent with the Federal Bureau of Revenue (FBR) requirements. After the abolition of Circular No 01 of 2013, payment of sales tax on electronic media advertisement services should be in accordance with other jurisdictions (such as SRB, KPK, BRA and FBR) rather than on the basis of turnover or population proportion. Section 70 of Chapter X of the Punjab Sales Tax on Services Act 2012 deals with the recovery of tax demands from running finance facilities of the taxpayers. It should be amended to reflect the current situation, which is inconsistent with and contrary to the principles of natural justice, as well as being detrimental to the business operations of the taxpayers because no tax demands can be recovered from the liabilities of the taxpayer. Check out? Telcos to Ask Govt For Reversal Of Withholding Tax On Cellular Services In New Budget
