Expressing serious concerns over heavy/double taxations on telecom sector, State Minister for Information Technology and Telecommunication Anusha Reham said that the business environment for IT sector in the country is going to strangulate to death. Quoting the GSM report, IT minister said that Pakistan is the second country in the world with heavy taxation on telecom sector. She stated this while briefing the National Assembly Standing Committee on Information Technology and Telecommunication, which met with Captain Mohammad Safdar (Retd) in the chair.
After the federal government, provincial governments have also imposed heavy taxes on telecom sector especially on broadband services, which is at the initial phase of its survival. The heavy taxation is negatively impacting the business and growth of telecom sector, said the minister. She further said that after the 18th Constitutional amendment, telecom is still a federal subject.
Currently some provinces are collecting tax on services, which gives a perception and in reality as well, that there is double taxation in the country. Currently only national roaming is allowed and if provinces continue collecting taxes then it will require provincial roaming. Nobody can define limits for acquiring telecom services while moving from one province to another. Anusha Rehman said that access to broadband services in the country was 3 percent before the launch of 3G/4G services, which is now around 15 percent.
Captain Safdar (Retd) threatened to resign from the chairmanship of National Assembly Standing Committee on Information Technology and Telecommunication if telecom operators defy his directives of briefing the Committee. The committee chairman while chairing the meeting also issued directives to write to the cellular operators for converting mobile towers from generators to solar towers in one year, as it is causing environment pollution and serious annoyance to the general public.
Safdar said that if one goes out of Islamabad and Murree, mobile signals disappear while operators are not fulfilling their licenses obligations to give coverage on inter-provincial and highways. The committee chairman also asked Pakistan Telecommunication Authority (PTA) to present a matrix of cellular operators' coverage in the country. Committee member Awais Ahmad Khan Leghari apprised the committee that in a recently held meeting of the Council of Chairs presided by Speaker National Assembly Ayaz Sadiq has given a ruling that any private company, organisation or individual can be called on to committees meetings. It is obligatory for them to brief the committees.
Anusha Rehman and Secretary IT Azmat Ali Ranjha informed the committee that it is not mandatory for cellular companies to brief the committee. It was further informed that there are no license obligations for the cellular companies to go on solar towers.
Leghari said there is a need for a legislation to summon private companies to committees meetings. However Captain Safdar (Retd) maintained that cellular operators would have to come and brief the committee. The committee discussed the "Telegraph (Amendment) bill 2014" moved by Asiya Nasir, MNA and unanimously agreed with the proposals/ suggestions to the bill.
Chairman apprised that the same nature of bill ("Prevention of Electronic Crime Bill, 2015" has been laid in the National Assembly and the proposals of Asiya Nasir, (Mover)'s bill would also be incorporated in "Prevention of Electronic Crime Bill, 2015". Special Communication Organisation (SCO) officials informed the committee about the status and targets set/ achieved during the 1st quarter of year 2015-2016. Further, the committee directed the Ministry that Mobile Communication System might be extended in the Northern Areas ie Gilgit-Baltistan, Azad Jammu & Kashmir and the backward far flung areas of Pakistan. SCO urged that its projects may be given a priority with respect to approval and releases of funds to upgrade its networks in AJK&GB.
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