Senate body briefed on streamlining process of custom duty on cell phones

ISLAMABAD - The Ministry of Information and Technology, Pakistan Telecom Authority and Custom officials briefed the Senate Standing Committee on IT & Telecom regarding streamlining the process for collection of custom duty on cell phones on arrival at airports and extension of time period to block unregistered IMEI cell phones.

The Senate Standing Committee on Information Technology and Telecommunications was held Tuesday chaired by Senator Rubina Khalid.

During the meeting, Senator Fida Muhammad probed the panel regarding revenue generated by this measure.  The committee was informed that since 40 per cent mobiles enter the country through grey channels, this measure will generate a huge revenue for the country. The committee was also informed that taxes would be charged in three slabs (less than USD 60, more than USD 60 and USD 130 and more).

Objecting to the measure Senator Taj Muhammad Afridi was of the view that international duty structure must be followed. He recommended that the Finance Minister be present in the next meeting.

Senator Faisal Javed was of the view that imposing high taxes on mobiles being brought in Pakistan from abroad was pointless unless Pakistan established its own local industry.

Senator Mian Muhammad Ateeq Shaikh recommended that to protect the common man from being fleeced, it was imperative that mobiles being brought for commercial use be segregated from those being brought for personal utility.

Chairperson Committee Senator Rubina Khalid directed that the 30-day margin for registering a new mobile bought from abroad is less and must be extended to 60 days.  She suggested DIRBS programme workable so that both the government and the people of Pakistan benefit from it, it is imperative that duties be rationalised.  The committee showed displeasure at the lack of awareness of PTA regarding this issue.

While deliberating over the matter of paying increase in pensions to PTCL pensioners by Pakistan Telecommunications Employees Trust, Senator Ghous Muhammad Khan Niazi was of the view that paying what the Trust owed employees in instalments seemed feasible; since paying off all liabilities in full would be impossible. 

The chairperson committee showed dismay over delay in payments and said that the country is indebted to these people for dedicating their lives to the service of the people of Pakistan. She said that it is a shame that at this critical stage in their lives when it is time for them to rest, they are forced to incessantly pursue what is rightfully theirs.

The meeting was attended by Senator Fida Muhammad, Senator Muhammad Tahir Bizenjo, Senator Ghous Muhammad Khan Niazi, Senator Engr. RukhsanaZuberi, Senator Sana Jamali, Senator Taj Muhammad Afridi, Senator Molana Abdul GhafoorHaideri, Senator Mian Muhammad Ateeq Shaikh, Senator Faisal Javed and senior officers from the Ministry of IT (MOIT), Pakistan Telecommunication Authority(PTA), Federal Board of Revenue (FBR).

On the other hand, Federal Minister for Information Technology and Telecommunication Dr Khalid Maqbool Siddiqui chaired second meeting of Prime Minister’s Task Force on IT and the three Sub Task Forces on IT, Telecom, and Human Resource Development gave recommendations regarding IT, Telecom and HRD sectors.

The Sub Task Force on IT gave recommendation for setting up of special technology zones in the country for enhancing IT exports. It is observed that image of our IT industry will enhance by establishing special technology zones in country.

While speaking, Dr Atta-ur-Rehman said that instead of setting up of special technology zones from the start while developing land for this purpose, existing buildings or infrastructure can be designated as special technology zones.

About spectrum, Dr Atta-ur-Rehman said that spectrum should be allocated in right manner. He also emphasised need of promoting locally manufacturing products like mobile phones, computers, laptops etc.

It is also proposed that IT related small and medium enterprises (SMEs) should be empowered by establishing special technology zones.

The members of the Sub Task Force on Telecom observed that the telecom taxes in Pakistan highest in the world. It was proposed that 12.5 per cent Advance Income Tax on Internet must be zeroed.

The meeting was told that 1000 union councils in the country have fiber cable connectivity and it is target to connect 3100 more UCs with optic fiber cables for broadband supply.

It was also recommended to develop a digital content of all subjects at schools and college levels besides giving IT training to students.

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