Telcos Asks SIFC to Abolish Fines, Advance Tax on Non-Filers in Finance Bill

Telecommunications companies in Pakistan have requested the Special Investment Facilitation Council (SIFC) to abolish fines and advance taxes imposed on non-filers as part of the new finance bill. These telcos argue that the existing tax regime, which includes fines and a 0.6% advance tax on cash withdrawals by non-filers, significantly hampers their operations and the broader economic environment.

This request comes in the context of broader tax policy discussions, including measures suggested by the International Monetary Fund (IMF) to increase penalties on unregistered traders and enhance the tax burden on non-filers to improve revenue collection and reduce tax evasion. The government’s current stance involves strict enforcement of tax laws, including blocking mobile SIMs for non-filers and raising the advance tax rate on bank withdrawals by non-filers from 0.6% to potentially 0.9%.

By seeking the abolition of these penalties, the telcos aim to alleviate the financial burden on their industry and encourage compliance among users who are currently deterred by these additional costs. This request is part of a broader dialogue between the government and various stakeholders to balance revenue generation with economic growth and industry sustainability.

You might also like