PTA Asked to Bar Telecom Companies from Bidding on 3G Spectrum Licenses due to Tax Evasion worth Billions
Recently, there came out a very disappointing report in Business Recorder that the Senate Sub-Committee on Ministry of Information Technology (MoIT) has asked Pakistan Telecom Authority (PTA) to disallow all telecommunication companies in participating to bid for 3G Spectrum licenses. The reason for such a penalty being tax evasion worth Rs.47 billion by these telecom companies.
The incriminating behavior of not revealing their tax record and invoices is something that the authorities are looking into and abusing them of stealing from the national exchequer by not paying their due taxes. So far, the PTA has sided with the government on the issue and said that they will be making these telecommunication companies come out clean on their taxation record.
Without disclosing the name of one of the leading telecommunication company, the Federal Board of Revenue (FBR) said that this alleged company is earning Rs.80 billion to Rs.85 billion annually in profits, but over the last five years has only paid Rs. 2.5 billion in tax. If such highly profitable companies, especially in the IT and telecom sector were to pay their due share of taxes, Pakistan will not need to depend on foreign aid to run its internal and external affairs.
Overall, this economic strength for Pakistan means an independent strategy and approach in handling its own issues rather than having to relying upon other international monetary organisations to draw out plans and conditions for the country. On the other hand, this also reflects badly upon the taxation policy that exists for the poorer class than those who can easily afford to pay their due shares and yet be financially successful. It is the greed in the developed areas of Pakistan that throws down the other underdeveloped sectors.