There will be 75 paisas charged on phone calls exceeding five minutes starting July 1, Finance Minister Shaukat Tarin announced Friday.
If a phone call lasts longer than five minutes, you will be charged 75 paisas per minute.
Every mobile phone call in Pakistan costs an average of 33 paisas. Every five-minute call earns telecom operators Rs1.65.
On these calls, the government levies a Federal Excise Duty of 19.5 percent. In addition to the 19.5 percent FED, mobile phone users will now have to pay these 75 paisas.
From July 1, the overall tax on mobile phone calls lasting more than five minutes will reach Rs2.72 or 65%.
According to Tarin, the government has not imposed any new taxes on internet and SMS services.
Pakistan’s telecom sector has emerged as a significant contributor to the country’s economy. Despite the COVID-19 epidemic, its contribution to the national budget rose by 129 percent in 2020 compared to 2019.
In FY 2020, the sector contributed Rs278 billion, up from Rs121 billion in FY 2019, according to the Pakistan Telecommunication Authority’s annual report released in January 2021.
According to the PTA, data usage has reached 4,498 petabytes, representing a 77 percent increase.
The country boasts 3.1 terabytes of international broadband connectivity and roughly 47,000 cell stations, 90 percent of which are 4G-enabled.
According to the PTA, 87 percent of the population has access to telecom networks. It is collaborating with operators to expand network coverage for the remaining 13% of the country’s population.
The telecom industry has been enlivened by local phone manufacture, with growth in local 4G device manufacturing exceeding 34%, according to the research.
Pakistan was one of the first countries in South Asia to try out 5G services.