ISLAMABAD ( ABRAR MUSTAFA )
The winning companies of 3G/4G auction held in April are expected to pay their advance tax with 50% of their spectrum fee on Tuesday. This shows that the companies that had serious reservations against the advance tax will be paying it now. There were three meetings in Finance ministry to discuss this issue. Zong is expected to pay its full spectrum fee whereas Telenor and Ufone both have paid their 50% fees already.
The government and cellular operators have reached a consensus on advance payment of withholding tax, as it was decided that the cellular operators will make 10 percent advance payment of withholding tax on account of 3G and 4G spectrum auctions within the ongoing month, an official said.
On every auction done by the government, the Income Tax Ordinance authorises the FBR to collect 10 percent WHT from the withholding agent who is selling any asset of the government.
Pakistan will award 3G and 4G licenses to all four cellular operators on May 22, a new telecom day in Pakistan for 2014, an official of the Pakistan Ministry of IT and Telecom confirmed. It was earlier planned to award licenses on May 17, a day, when the entire world celebrate World Telecom Day but the ceremony has been delayed further due to a tight schedule of Prime Minister Nawaz Sharif who has been requested to witness the landmark event in the history of Telecommunication in Pakistan.