Telecommunication

The telecommunication sector has consistently been a significant contributor, maintaining its position as the second-largest sector. It experienced a growth of 2% compared to the previous year and made contribution of Rs. 14.88 billion during FY 2022-23, whereas it generated Rs. 14.59 billion in the previous period. Various telecommunication services, including bandwidth services, telegraph, internet, data communication, network services, value-added data services, audio text services, vehicle & other tracking services, alarm services, and international incoming calls services, are subject to sales tax under tariff heading 98.12 of the Second Schedule. This heading comprises of 68 tariff sub-headings in the 2011-Act. The applicable statutory tax rate for these services is 19.5%. However, it’s worth noting that telecommunication services related to charges payable on international leased lines or bandwidth services used by software exporting firms registered with the Pakistan Software Export Board remain exempt from SST.