Probe into GST evasion by cellular firms sought

Published
0

ISLAMABAD, July 3: The Transparency International Pakistan has asked Pakistan Telecommunication Authority (PTA) to hold an inquiry into the alleged evasion of GST worth Rs47 billion against non-deposit of GST on hidden sale of pre-paid cards by five cellular companies operating in the country.

TIP has received a complaint wherein the complainant reported that in 2003-04 when the total connections were 5 million, and annual revenue was Rs27.84 million, GST paid to the government was Rs12.1 million. This was 44 per cent of collection, though the rate of GST was 19.5 per cent, TIP Adviser Syed Adil Gilani wrote in a letter to PTA Chairman Muhammad Yasin on Tuesday.

According to contents of the letter, the complainant reported that in 2010-11 when the connections were 118 million, the approximate value of pre-paid cards sold per month by the five companies was Rs31.65 billion.

In the revenue of the five companies, post-paid customers fee and users’ billed charges paid through check, inter change charges are not included.

The average monthly collection of revenue reported by the complainant for 2010-11 is approximately Rs42 billion per month, which comes to Rs504 billion for 2010-11.

Against this reported collection, the five cellular companies have reported on PTA website revenue of Rs262.76 billion for 2010-11, thus a shortfall of Rs241.24 billion in revenue collection has been identified by the complainant. The evasion of GST at 19.5 per cent amounts to approximately Rs47 billion.

TIP asked PTA to examine the complaint, and check the reporting procedure of cellular companies’ sale of pre-paid cards.

Opinion

Editorial

Referendum talk
14 Nov, 2026

Referendum talk

THERE is quite a bit of noise and confusion emanating from Islamabad on the question of new provinces. The defence...
Mineral wealth
14 Nov, 2026

Mineral wealth

PAKISTAN’S mineral wealth offers an opportunity to attract investment, earn foreign exchange and support long-term...
Late diagnosis
14 Nov, 2026

Late diagnosis

AS we mark World Diabetes Day today, Pakistan faces a troubling question: how many people are living with diabetes...
Climate challenges
Updated 13 Nov, 2026

Climate challenges

Pakistan cannot afford to confront its climate crises one disaster, one season and one international summit at a time.
Under fire
Updated 13 Nov, 2026

Under fire

KP police are increasingly vulnerable as they play a frontline role in ongoing operations against terrorists.
Used car imports
13 Nov, 2026

Used car imports

THE government’s effort to restrict used car imports appears to be faltering. So suggest the numbers. Despite...