May 14, 2006	Sunday	Rabi-us-Sani 15, 1427

KARACHI, May 13: The abolition of activation tax, expected to be announced in the upcoming budget, will increase the reinvestment rate and affordability. It will in turn lead to the increased teledensity and more equitable access.

A spokesman of Telenor said here on Saturday that the cut in activation tax will maximise the industry growth.

The activation tax, which was Rs1,000 in June 2004, was reduced to Rs500 in June 2005.