Dawn News

The PTA had declared the interconnection charges as expenses when the CCP regime was inked. - File photo

LAHORE: Perturbed over allegations of Rs47 billion sales tax evasion over the past five years, telecom operators will try to bail themselves out by bringing forth the Pakistan Telecommunication Authority’s position that the interconnection charges are ‘expenses’ and not `income’ under the Calling Party Pays regime.

During back-to-back meetings last week, the five telecom operators reportedly expressed their concern over what they claimed a ‘propaganda’ campaign against them with regard to Rs47 billion tax on interconnection charges.

Although the phone operators have sought Prime Minister Raja Pervez Ashraf’s help in stopping the National Accountability Bureau from holding a ‘media trial and harassment’ they are confident that the PTA’s stance over the issue would settle the matter in their favour.

“We have decided not only to knock at the door of relevant quarters to bail us out but also to present `facts’ to the public,” a representative of a leading telecom company told Dawn on Sunday. He said that telephone operators had been awaiting a positive response from the prime minister and were also optimistic that the PTA would stand by them over the issue.

The PTA had declared the interconnection charges as expenses when the CCP regime was inked.

“The interconnection charges are not income and tax cannot be imposed on expenditures.

“Therefore, we do not see the operators will be penalized in this case at end of the day,” a PTA official told this correspondent.

Comments (4) Closed

Jul 30, 2012 08:13am
Zong, Ufone, Mobilink, Telenor. Happy now?
Jul 30, 2012 05:51am
why not the names of the Telecom operators in this report...??
Jul 30, 2012 11:31pm
lol, grow up guys !
Jul 31, 2012 12:49am
first fbr said it is a fraud of 47b and now pta says these are expenses(interconnect charges).i think somebody wants to scare telec.companies.this is common in our country.allah can help us only.