All the taxes and tariffs you pay on cellular services

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The Pakistan Telecommunication Authority (PTA) has released a comprehensive breakdown of current mobile service tariffs in the country, including charges for voice calls, data, and SMS. The disclosure comes amid growing public concern over high usage costs and taxes.

According to PTA, the basic “Pay As You Go” (PayG) tariffs—applicable when users are not subscribed to any packages—range between Rs3.2 and Rs3.6 per minute for voice calls. Data usage is billed at Rs3.3 to Rs5 per megabyte, while SMS costs between Rs2.15 and Rs2.5 per message.

However, mobile users face a significant tax burden. A Rs100 card recharge effectively credits only Rs86.96 due to a 15% Withholding Tax (WHT).

In addition, a 19.5% General Sales Tax (GST) is applied to each individual usage—calls, data sessions, and messages—amounting to an estimated Rs14.19. The combined tax load on a single top-up reaches Rs27.23.

PTA clarified that GST is also applicable to all bundles, offers, and subscription-based services. The tax policy applies equally to both prepaid and postpaid customers, covering nearly all segments of mobile users.

From a regulatory standpoint, PTA requires operators with Significant Market Power (SMP)—currently Jazz—to obtain prior approval before raising tariffs or launching new packages. These operators must submit detailed proposals, including justifications, consumer impact assessments, and industry comparisons.

In contrast, non-SMP operators like Ufone, Telenor, and Zong have the autonomy to set tariffs independently, though all providers are mandated to inform customers at least seven days before implementing any price changes.

While PTA did not disclose the date of the most recent tariff revision, the regulator affirmed that any proposed changes by SMPs undergo a strict evaluation process, considering operational costs, inflationary pressures, and broader market trends.

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