According to the notification, the internet services whether dialup or broadband including email services, Data Communication Network Services (DCNS) and value added services used by the public will no more be charged in the form of sales tax.
Additionally, the tax is also exempted from the international leased lines or Bandwidth services used by Software exporting firms registered with Pakistan Software Export Board (PSEB) and Data and Internet Services providers licensed by Pakistan Telecommunication Authority (PTA).
It is important to mention here that the 19.5% tax on internet services by the government of Punjab was imposed through a SRO on May 28, almost half a month before provincial budget after which the Internet services providers in the country raised the prices of all kinds of internet packages.
As a result of this, digital community of Pakistan launched a protest on June 9, 2015 through a press conference where it was announced that a partial blackout would be observed on all the websites in the country in order to raise voice against the unjustified tax on internet.
It seems like the Punjab Government has realized that it was an anti-technology step, and thus the notification has been issued.
The cellular operators have also been asked to pass on the fresh order to the customers by reversing the recently increased tariffs on the 3G and 4G packages.
Below is the official notification from Ministry of Finance regarding withdrawal of sales tax from internet services.
