The massive taxation on cellphone companies in Pakistan has prompted Norwegian government to step in as the foreign affairs ministry conveyed a message of Norwegian Minister of Commerce/Foreign Minister to the finance ministry expressing annoyance over taxation. The sources privy to the development told Business Recorder that Ministry of Foreign Affairs has approached Finance Ministry on the issue of difficulties faced by telecom companies due to massive taxation in Pakistan.
According to the Ministry of Foreign Affairs, a leading telecom company is owned by the group of Norway that is working in telecom sector of Pakistan, has been raising the issue of huge taxation in the telecom sector for a long time. The Norwegian group has categorically stated that massive taxation is putting a lot of burden on customers, hampering the prospects for further advancements in the field and realisation of ultimate dream of a digital Pakistan.
The issue was taken up by some Minister of Commerce of Norway with Pakistan commerce minister during his meeting with on 21st October, 2016 in Norway; and then by Norwegian Foreign Minister in his brief pull-aside interaction with Khurram Dastgir and also by Norwegian Ambassador during a meeting with additional secretary (Europe) a couple of times.
The telecom company's president and CEO had also met Pakistan's ambassador to Norway to discuss the issue, during which he handed over a letter specifying the difficulties faced by company in Pakistan and a brief on taxation in the mobile sector of Pakistan. During his meeting he mentioned that the telecom industry is continuously engaged in a dialogue with the government on the issue over the years without finding proper solutions.
It goes without saying that the said group has largest single European foreign direct investment in Pakistan with figures of over US$2.5 billion. Company in Pakistan has reported a subscriber base of over 36 million, making it Pakistan's second largest mobile operator. It has created 2400 direct and 25000 plus indirect jobs. It also has a network of over 200000 retailers, franchises and sales & service centers, thus providing means of livelihood to thousands of Pakistanis. As per figures given by the Group, it has contributed over Rs 147 billion in various forms of direct and indirect taxes to the national exchequer.
The Ministry of finance and Board of Investment are requested to review the letter and memo shared by the Group with a view of addressing their concerns. The comments/views on the issue may be forward to Ministry of Foreign Affairs allowing it to send an appropriate response to the Norwegian Ambassador in Pakistan and to the CEO of the Group in Norway, Ministry of Foreign Affairs.
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