Punjab Government withdraws sales tax on Internet

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Punjab Government withdraws sales tax on Internet

Back in June this year, Punjab Government enforced sales tax of 19.5 percent on internet services in the province. The tax was announced for all sorts of internet i.e. mobile, wireless, fixed line and others. This lead to severe reactions from IT and telecom sector. The govt. promised to remove it but kept delaying the official notification to take it back. Now finally, Punjab Government has withdrawn 19.5 percent sales tax on Internet.

All mobile phone companies have been notified regarding the notification. They will not be charging the sales tax from now on. We can expect considerable reduction in prices of internet packages. The reversal of tax is from current date and not since it was imposed i.e. 28th May 2015. It means the tax already paid by customers is not going to be refunded back. Here is an image of the official notification regarding withdrawal of sales tax on internet issued by Punjab Revenue Authority:


After this, only Sindh and KPK provinces are having 19.5% and 18.5% sales tax on internet services respectively. Hopefully, they will also be removing it soon. What are your thoughts on this great news, guys? Write to us in comments section below.

Image Source: ProPakistani