Government of Punjab imposes 19.5% tax on Internet Usage

Government of Punjab has imposed 19.5% tax on internet usage of 3G, 4G, broadband and related internet services with speed over 2 Mbps and if the monthly bill for these services exceeds Rs. 1500 per month.

According to the notification issued by the Government of Punjab, the previously granted tax exemption to internet services has now been withdrawn. This move has also been seen as undermining the government’s and industry’s efforts to promote 3G and 4G services and has been criticized as deterring future investments.

A service tax on conventional internet usage Khyber Pakhtunkhwa and Sindh is already being charged but the one in Punjab would be imposed on all forms of conventional internet as well as mobile data. It is expected that Balochistan may also follow suit.