Home Press Release No FED on phone calls/SMS/internet data inclusive Budget 2021-2022

No FED on phone calls/SMS/internet data inclusive Budget 2021-2022


The Budget 2021-2022 was announced by the PTI government last week. Amongst many other terms, the budget had proposed a new tax on the telecom sector which stated that every GB of internet usage would be fined with Rs 5 tax. Whereas, an additional Rs 1 would be charged after the first three minutes of a call and 10 paisas on each SMS. Moreover, these taxes were to be applied on top of the existing taxes paid by consumers.

Telcos Disapprove Governments Suggestion of Blocking Sims of Unvaccinated Citizens. Learn more here

This section of the budget was met by stern opposition from the telecom sector. However, things took a turn for the better when the Federal Minister stated in his post-budget conference that there was some confusion with respect to the Federal Excise Duty mentioned on the bill regarding SMS, internet usage, and calls. The Federal Minister further clarified that the new taxes were not accepted by the Federal cabinet. Therefore, the proposal was withdrawn and will not be included in the final draft of the budget 2021-2022.

“We will do nothing to pursue these proposals. That is off the table”, Shaukat Tarin added.

Read here about the relief Packages for Telecom Industry in the Budget 2021-22 

Furthermore, the rate of federal excise duty (FED) on telecommunication is proposed to be reduced from 17 percent to 16 percent along with a 3% reduced rate on oilfield services, warehousing services, logistic services, collateral management services, and telecommunication services. The bill also covers Tax Exemptions included for Roshan Digital Accounts.

Learn more about Roshan Digital Accounts in the video below

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