New Withholding Tax Prejudice Telecom Growth
Current government has recently imposed new withholding tax is started to impede the growth factor of telecom sector, since from the date of 1st July 2013 once the tax imposition come into reality and within the passage of some days registered declining trend of prepaid card users.
It is also expected that revenue will further decline in coming days and also irritate the government 3G plan because government also planning to go for 3G and 4G auction and generate 1 billion dollar and get supported to increase government revenue.
According to some officials the revenue stream is Rs. 20 billion from the sales of prepaid calling cards which will further decline to the 1 billion rupees in the month and industry prospect this is big loss and industry already surviving in the lowest average rate per user.
So government is taking wrong initiative to increase its revenue to adding more tax on telecom sector according to the former members of PTA.
The industry officials further said subsequent the decline in the revenue will lead to think industry to take up cost cutting measures.
The industry will limit its advertisement budget, reduce operational expenses and hold the network expansion plans, they added.