I am writing in reaction to a story I saw on an international news channel titled 'Broadband tax hits Pakistan internet users'. The link is available online and the story behind it paints a picture of gloom and doom for internet growth and penetration.
I know a lot has been said and written about the joke of a tax, which we consumers have been burdened with, but nothing seems to be enough to change the attitude of the government. The government must not lose sight of the fact that a reduction in the taxes on the mobile sector not only increases digital and financial inclusion and economic growth, it can also generate higher tax revenues through more efficient and broad-based taxation. Furthermore, exempting the tax on internet services has the potential to increase and enable the investment required to further expand mobile broadband network infrastructure.
While news from across the border is nothing but rosy after Modi's whirlwind tour of the world's top tech companies left much of the Silicon Valley excited about the tech sector's role in an increasingly influential country. Not to mention, a deal he struck with Google to provide free Wi-Fi across 500 railway stations in India.
The government needs to follow our neighbour's example and protect the openness and viability of the Internet as a platform for commerce, speech and exchange of ideas, and not to be a hurdle to its growth. Access to online communication is no longer tax-free, access to the global marketplace, so crucial to Pakistan's economic future, is not tax-free. The cost to consumers easily runs up to thousands of rupees a year per household for a service which has become a part and parcel of our life. Now is the time to get rid of this evil and ensure greater prosperity through an increase in internet usage across the country.
It is sad to see that the policymakers have chosen short-term revenue gains over the betterment of the provincial economy as a whole. A lot of local industries, especially in Punjab, have benefited from the mobile internet revolution since the launch of high-speed mobile internet; e-commerce industry and local start-ups being the prime examples. I sincerely hope that consumer courts would take notice of our bereavement, like international media has, and issue a stay order not just to provide us relief but for the sake of future economic and social development.