PTA Reveals Mobile Service Tariffs and Tax Burden on Consumers

The Pakistan Telecommunication Authority (PTA) has publicly detailed the current tariff structure for voice calls, data, and Short Message Service (SMS) offered by cellular mobile companies operating across the nation.

According to the regulatory body, standard Pay As You Go (PayG) rates for voice calls are currently in the range of Rs. 3.2 to Rs. 3.6 per minute. For data services, consumers not subscribed to bundles can expect to pay between Rs. 3.3 and Rs. 5 per megabyte (MB). SMS charges vary slightly among operators, ranging from Rs. 2.15 to Rs. 2.5 per message. The PTA clarified that these base rates apply only when users are not utilizing any specific package or bundled service.

Significant Tax Deductions on Mobile Top-Ups

The disclosure also highlighted the substantial tax deductions that consumers face when recharging their mobile credit. For every Rs. 100 card load, a significant amount is deducted in taxes, leaving users with only Rs. 86.96 in their account. This is primarily due to a 15 percent Withholding Tax (WHT), which amounts to Rs. 13.043 on a Rs. 100 top-up. Furthermore, a 19.5 percent General Sales Tax (GST) is applied separately to each individual call, SMS, and data session, typically costing users an additional Rs. 14.190. Consequently, the total tax burden on a single Rs. 100 mobile card load reaches a considerable Rs. 27.233.

GST Applies to All Usage and Packages

The PTA further clarified that these taxes are not limited solely to balance top-ups. The 19.5 percent GST is consistently applied to all individual usage of voice, SMS, and data services, as well as to subscriptions for various packages, bundles, or promotional offers. This uniform tax structure affects both prepaid and postpaid service users, impacting a wide range of consumers regardless of their chosen subscription model.

Regulatory Oversight on Tariff Changes

Regarding regulatory oversight of pricing, the PTA mandates that operators holding Significant Market Power (SMP), currently identified as Jazz, are required to seek prior approval from the Authority before implementing any increases in tariffs or introducing new service packages. These SMP operators must submit detailed proposals that include comprehensive justifications, an analysis of the potential impact on consumers, and relevant comparisons with industry standards.

Operators not classified as SMP, which include Ufone, Telenor, and Zong, have the autonomy to set their tariffs independently. However, all mobile operators are obligated to provide consumers with a minimum of seven days’ advance notice before implementing any changes to their service charges. While the PTA did not specify the exact date of the last industry-wide tariff adjustment, it confirmed that all tariff proposals submitted by SMP operators undergo a thorough evaluation process. This evaluation considers factors such as the operators’ justified operational costs, prevailing inflation rates, and overall trends within the telecommunications industry.

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