STAFF REPORT ISB: The Federal Board of Revenue (FBR) has categorically conveyed to the telecom companies that the governments policy does not allow any new exemption of duties and taxes under compensation package for telecom sector.
According to sources, a meeting of FBR team of tax managers and CEOs of all telecom operators held at FBR House last week on the re-verification of SIMs under the National Action Plan.
The meeting mainly discussed the compensation package for telecom sector following possible revenue loss after re-verification of SIMs.
Tax authorities informed the CEOs that it is not governments policy to give new exemptions or tax concessions, as the FBR is committed to phase out exemption through SROs in three years period.
The CEOs of the telecom companies proposed maximum tax concessions under the compensation package for telecom sector.
FBR officials responded that it was not necessary that compensation should be in the form of relief in payment of duties and taxes. The government has other options to compensate telecom sector instead of concessions in duties and taxes. The genuine users of mobile phones would ensure re-verification of SIMs, as compared to illegal SIMs.