Tax on overseas phone calls increased despite CCPs opposition

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Tax on overseas phone calls increased despite CCPs opposition

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Tax on overseas calls has been increased despite opposition by Competition Commission of Pakistan.

23 October,2012 05:36 pm

According to sources, the Competition Commission opposed the rise in taxes but the government did not support it.The increase has encouraged formation of cartels of telecom companies at international level, and also led to paving the way of illegal gateway exchange in Pakistan, sources added.Sources informed that the cartel of international telecom operators is possibly going to establish their monopoly. In addition, the consumers are left with limited choice and are forced to call to Pakistan paying an extra amount.Sources in Telecom sector further told that the rise in tax on incoming calls has affected 8 million Pakistanis. The telecom operators were receiving different charges for phone calls coming from abroad, which maintained an environment of competition among them. Now, the tax imposed on these calls has amplified the government revenues but it discourages the trend of competition.After the government increased the taxes, telecom operators imposed a settlement rate, as a result of which their income increased, also magnifying the revenue of Pakistan. However, the callers from abroad will be charged extra bills.