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Lahore, June 08, 2015: Pakistani bloggers and
internet companies today decided to blackout their websites in protest
against the recently imposed taxes by the Punjab Government on internet
services, according to a joint statement issued by digital publishers of
Pakistan at a press conference in Lahore.
Punjab government - through an SRO - imposed this week a whopping 19.5%
tax on all kinds of internet usage for those with Rs. 1,500 or above
monthly bills or 2Mbps and above broadband speeds.
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This tax is imposed on all kinds of internet services in Punjab
including 3G, 4G, DSL, EVDO, fiber etc. Other provinces and centre
(Islamabad) are likely to follow the suite.
Digital publishers, who have support from cellular mobile operators,
banks, consumer associations, PASHA and ISPAK along with civil society,
said that the country's top websites are already running black
home-screens in protest against taxes on internet.
This country-wide internet blackout campaign is likely to be supported
and acted upon by thousands of Pakistani websites and bloggers who have
demanded immediate withdrawal of taxes on internet.
According to a joint statement from digital publishers, this tax by the
Punjab Government on internet is going to hamper the current 3G/4G
uptake that has reached 15 million subscriptions in just one year of
3G/4G launch.
After several delays - spanning many years - Pakistan auctioned 3G and
4G licenses last year and telecom operators invested $1.1 billion on
spectrum auction only. Several hundred million dollars were also spent
on network up-gradation, however, telecom operators - in a joint
statement earlier this week - said that their future investments on
network rollout and upcoming spectrum auction is conditional with
reversal of this tax.
Punjab is likely to collect Rs. 1.1 to Rs. 1.5 billion per year in taxes
from the sector, however, corresponding negative growth on internet
uptake due to these taxes will cause the national economy an estimated
loss of Rs. 100 to Rs. 200 billion in five years (Reference PLUM
research).
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Studies show that 10 percent uptake in broadband subscriptions increases
national GDP by 1.5% and slowness of internet uptake due to these taxes
is only going to harm the already struggling economy of Pakistan.
Punjab government, on one side, is making efforts for digitization of
the province through several initiatives from PITB and distribution of
several hundred thousands of laptops each year, while on the other side
it is imposing taxes on internet to block the growth and academic
potential of the youth.
New taxes are also going to block development work in e-education,
e-health and e-banking sectors. |