Senate Committee Urges FBR to Ease E-Commerce Taxes

The Senate Committee on Information Technology convened on Monday and voiced strong disapproval of the substantial taxes levied by the Federal Board of Revenue (FBR) on e-commerce activities. The committee advocated for tax relief to foster the expansion of the nation’s digital economy.

The committee, led by Palwasha Khan, conducted a review of the existing tax framework impacting online businesses. Recent developments were also examined, notably a 15% increase in quarterly tariffs by the telecom provider Jazz, which was authorized under Pakistan Telecommunication Authority (PTA) regulations.

During the proceedings, the PTA Chairman briefed the members, indicating that Jazz and Telenor reported profitability in 2024, whereas Zong and Ufone experienced losses. The Chairman assured the committee of the PTA’s dedication to supporting telecom operators.

The committee members voiced concerns regarding the inadequate quality of telecom services throughout the country. They emphasized that a long-standing spectrum allocation dispute, dating back to 1995, significantly hinders the sector’s advancement.

Palwasha pressed the relevant authorities to resolve the outstanding issue swiftly. She also requested the presence of the Attorney General for Pakistan, representatives from the Frequency Allocation Board, PEMRA, and the FBR at the upcoming meeting to facilitate further discussions.

Senator Nadeem Bhutto expressed apprehension about the absence of cellular coverage in the interior Sindh region during prolonged power outages, attributing this to the insufficient backup power infrastructure of telecom firms. Other committee members underscored the critical need for consistent service delivery in remote and underserved areas.

The committee addressed misinformation circulating on social media concerning the alleged appointment of an Egyptian legislator to Pakistan’s AI policy advisory group. The Ministry of Information Technology clarified that no such appointment had occurred and was tasked with investigating the source of the false claims.

Officials provided the committee with an update on the Universal Service Fund (USF), reporting that 4,206 sites were operational nationwide, including 22 towers in Gwadar.

Members urged for the further development of telecom infrastructure in areas that are currently underserved. Senator Humayun Mohmand reported issues with substandard mobile service on Islamabad’s highways and in residential zones, suggesting that security-related jammers were the cause and advocating for service enhancements.