ISLAMABAD: Federal Board of Revenue (FBR) has decided to launch a pilot project for real time connectivity from this month to ensure precision in count of taxes collected from phone users.
A new system would be implemented for cellular companies for accurate collection/deposit of withholding tax from its subscribers through online withholding data integration with all mobile operators.
Official sources on Wednesday said the tax authorities have decided to commence the process for establishing online withholding data integration with all cellular companies simultaneously to ensure precision in count of taxes collected from phone users.
Giving details about the mechanism adopted by FBR and Pakistan Telecommunication Authority (PTA) regarding collection of taxes i.e. GST and WHT from cellular operators, the sources said a new Intelligent Tax System has been established with help of Pakistan Revenue Automation Pvt Ltd (PRAL) which would help analyze the exact data of taxes collected by mobile phone operators.
Around Rs 47 billion were collected as WHT from consumers and Rs 14 billion were adjusted in 2015-16. The provinces are charging different rates for GST taxes on telecom sector and tax collection by provinces under the head of GST is excluding these numbers.