Federal Price range: Govt decides to impose 12.5% FED on Web Providers

Within the Finance Invoice 2019-20, the federal government has proposed to impose 12.5 % Federal Excise Obligation (FED) on web providers and overseas satellite tv for pc bandwidth service.
In accordance with the budgetary paperwork, the federal government has instructed the withdrawal of exemption of FED on web providers and overseas satellite tv for pc bandwidth service.
At present, beneath the Third Schedule to the Federal Excise Act, 2005 the web providers exempt from fee of the FED, nonetheless, telecom providers supplied in Islamabad Capital Territory are topic to FED. Furthermore, bandwidth providers are additionally exempted from fee of FED.
In a bid to guard native providers suppliers, the federal government goals to withdraw exemption on providers supplied by overseas satellites.
The federal government has proposed the withdrawal of three% Worth Addition Tax (VAT) on Cellular Telephones. This 3% regime can also be proposed to be transferred from the Gross sales Tax Particular Procedures Guidelines, 2007, to the brand new Twelfth Schedule to the Act.
To be able to encourage the native business, the federal government has additionally proposed justification of tariff construction for SIM card manufacturing business.
In accordance with the Finance Invoice, 2019 no levy has been imposed on imported cell handsets valued beneath $100, whereas, cell phones value $100 to $200 will likely be imposed with tax charge Rs 400 (which is presently Rs 500).
Imported cell phones value $200 to $350 has been proposed to imposed with levy Rs. 1,200 (which is presently Rs 1500), Rs.2800 levy proposed on imported cell phones value $350 to $500 (presently is Rs 3500) and Rs. 5600 levy proposed on imported cell phones value above $500 (which is presently Rs 7000).
On Tuesday, Minister of State for Income Hammad Azhar unveiled the federal funds for the fiscal yr 2019-20 estimated to be having an outlay of Rs6 trillion.
The funds outlay is Rs7,022 billion which is 30 per cent greater than final yr.