Tax evasion of Rs 47 billion: no link with telecom firms' wrongdoings: PTA, IT ministry

The Ministry of Information Technology and Pakistan Telecommunication Authority (PTA) have said that they did not know anything about the alleged tax evasion of Rs 47 billion by five telecom companies. They argued that both IT-related government departments had no role in the crucial issue directly affecting the cellular industry.
The Ministry informed the National Assembly's Standing Committee on Information Technology (IT) that it had nothing to do with the alleged scam and PTA was the regulator and could inform the committee in this regard. Both the Ministry of Information Technology and the PTA tried to create an impression before the committee that there was no communication between the regulators and the mobile phone companies on the issue of interconnection charges.
The IT Ministry said: "We have nothing to do with the case on interconnection charges. No mobile phone company has approached the Ministry in this regard. Being regulator of telecom companies, PTA should be asked about progress in the case. The Ministry of IT follows the policy directives of the government and (has) no regulatory role on the telecom operators."
The committee met with Chaudhry Mohammad Barjees Tahir in the chair here on Tuesday. DG PTA Sajad Latif Awan informed the committee that the telecom companies had not contacted PTA. However, he said, the companies had approached the Prime Minister, writing a letter in this regard.
The Committee Chairman asked PTA if the Authority was informed about the alleged scam, why it failed to take action and if it did not want to take action, then PTA should be abolished or merged with the IT Ministry. Rejecting PTA's claims, representatives of telecom companies informed the committee that they had twice approached PTA, but there was no response from the regulator.
Expressing serious concern, the committee said that no one was ready to take responsibility. The committee chairman said that the IT Ministry, an important ministry was being run on ad hoc basis, and most of its officials were temporary. When Chairman of the committee repeatedly asked the IT Ministry and PTA officials why they had not taken appropriate action against the mobile phone companies, they could not give any clear answer. They insisted that the issue was mainly related to Federal Board of Revenue (FBR). According to PTA officials, the issue should be taken up with the FBR officials who were responsible for taxation of the cellular industry and PTA had no role in the whole issue.
The committee recommended calling Chairmen of the FBR and PTA in addition to officials concerned of the Law department in the next meeting to discuss the issue. Chaudhry Barjees said that the committee would not accept the participation of any low-grade FBR or PTA official in the next meeting. "Only FBR Chairman and PTA Chairman should respond to the committee's queries." "We have to keep a watch on investors' interest in the country who are making huge investment and relevant authorities should clarify their positions in the case," chairman of the committee added.