The federal government has decided to constitute a committee to review the increase in telecom tax proposed in the Mini-Budget.

According to sources, Federal Minister for IT & Telecommunication, Syed Amin Ul Haq, opposed the increase in tax on the telecom sector in an emergency cabinet meeting held on 30th December 2021. The Federal Minister said that an increase in tax on the telecom sector will have a negative impact on growth and investment.

Sources claim that after the federal minister’s objection, the cabinet decided to form a committee to review new tax proposals. Ministry officials say that no such committee has yet been formed, but the federal minister has opposed these taxes.

The federal government in the mini-budget proposed a 17 percent sales tax on imported phones valuing more than $200.

The government has also proposed to increase the Withholding tax from 10 to 15 percent for telecom customers. Previously the government reduced WHT from 12.5% to 10% in the 2021-22 budget and also promised to reduce it to 8% in the next budget.