The Government of the Punjab has decided to provide all types of the internet like 3G, 4G, DSL or other kind of internet, which are now expensive after imposing the new taxes like 19.5 % sales tax. The finance minister of Punjab government did not mentioned new tax in the budget speech but all kinds of internet will be taxed at flat sales tax rate of 19.5%.
There is 14% tax being deducted for internet services all over Pakistan and the entire tax on internet to around 35%, which is roughly one third of the total price. The users, who use internet below Rs.1500 per month, they are exempted from this newly imposed sales tax. The officials of the mobile phone companies confirmed the imposition of the new said and this measure goes against the digital Pakistan ambitions of the government. The new taxes will be imposed from 1st July 2017.
Pakistan is included in those countries, where internet is taxed and it must be noted that Punjab government imposed the tax in 2014 but after facing the backlash, they withdrew the tax. Pakistan has added about 40 million new users of internet during last three years. The imposition of the new tax will put the caps on the exponential growth rates and will badly impact the economy of the country. Punjab Government has the population of over 50% and there are 56% of the internet users in Pakistan, who live in this province.