Increase SMS rates, get tax relief, says Gov to cellular operators

Thursday, June 11, 2009

Cellular operators reject govt offer

LAHORE: The cellular phone operators are not willing to accept the government’s offer to increase their SMS rates in order to get relief in the GST and SIM activation charges.

The News has learnt that a meeting was held between CEOs of cellular companies and the adviser to the prime minister on finance Shaukat Tarin on Monday in which the adviser had linked the decline in GST and SIM activation to increase in SMS rates.

All operators rejected the offer except one that is not offering bundle SMS package to its customers. The only beneficiary of the government offer would be that single company, which was unable to continue bundle SMS packages due to network issues, the finance ministry revealed.

The SMS addicted youth would be the target of the government for generating revenue.

Currently, if a company offers unlimited SMS for Rs3 per day the government earns only 0.21 paisa tax from this package. Once the SMS rates would be increased the bundle SMS packages would automatically end. Thus the government will earn taxes on every SMS which ever be the rates.


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