'PM, Cabinet did not approve imposition of FED on internet data', says Hammad Azhar

After the budget speech in the National Assembly on Friday, there was a strong reaction from many quarters to the proposed duty on the internet data.

However, shortly after the budget speech, Federal Minister for Energy Hammad Azhar tweeted:

The PM and Cabinet did not approve the FED levy on internet data usage. It will not be included in the final draft of the Finance Bill (budget) that is placed before parliament for approval.

— Hammad Azhar (@Hammad_Azhar) June 11, 2021

Keep in mind that the budget proposes that federal excise duty be levied on internet data, SMS and calls lasting more than three minutes.

Under this, as soon as the call of a mobile user exceeds three minutes, an additional charge of Rs1 per call will be levied in addition to the existing rates.

Finance Minister Shaukat Tarin said that at the current rates of the internet if more than five GB of the internet is used, an additional tax of Rs5 per GB will be levied.

The announcement of a tax on the internet drew a strong response on social media, after which the government announced a tax rebate on internet usage.

Energy Minister Hamad Azhar tweeted that "the Prime Minister and the Cabinet have not approved the imposition of federal excise duty on the Internet and it will not be included in the Finance Bill (Budget) to be presented for approval in the National Assembly."

In his address, Shaukat Tarin said that apart from the existing rates and duties of SMS, 10 paise per SMS is being increased.

Mr Tarin said the move would impose a modest tax on a large part of the settlement.

However, experts and social media users have criticized the government's move.