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Internet Taxes can Cause National Economy Up

It is accepted at wide level that broadband services and infrastructure give to economic growth and job creation. As a result, several governments have done the development and usage of broadband services a policy priority. There are different researches to proof that 10% increase in internet diffusion can boost a country’s GDP from 0.1 to 1.5 percent, with best level influences found in developing market like Pakistan.

Last year in April 2014, Broadband subscription in Pakistan reached to 3.4 million before the auction of 3G/4G licenses, and now with-in one year of 3G/4G services we have 15 million 3G users. It means a whooping 15 million enhancement in broadband subscription either 8.33% saturation in the country. Therefore it can be drived that Pakistan’s GDP did growth around 1 to 1.4% during the previous year.

According to PLUM Research titled “Economic and Social Benefits of 3G in Pakistan”, Pakistan would be adding Rs. 40 billion to its economy due to this increase in internet penetration during first year of auction. Multiple effects could add another Rs. 1,000 billion to the economy in next five years.

This research can be finding in Google with keyword “Plum Economic and Social Benefits of 3G in Pakistan”. One can move on and study it to get info as how broadband penetration can support Pakistani economy. According another update Punjab will avail 2-3 billion through taxes against several billions in potential because of slowness in 3G/4G uptake.

On the other hand with recently declared taxes on internet, it is predicted that this uptake in Broadband subscription will thrust by 20-25%. This slowness will be caused due to increased data rates plus sluggish network roll-outs and future investment in technology up-gradation from cellular operators. According to an estimate it will take the economic lose till Rs. 200 billion (20 percent of Rs. 1,000 billion gain as proven above) due to these taxes.

Additionally this is just not the money, it is the job— over 900,000 of them that Anusha promised at the time of auction while citing the same PLUM research — a lot of e-health, e-education, e-banking, e-farming and other development projects that we won’t be able to do just due to taxes.

To enhance the user interest currently the Pakistan users profits is rotating around or less than Rs. 26 billion per year. However, Punjab already has 56% of cellular subscribers, total tax collection from data services (at 19.5%) isn’t going to cross Rs. 2.5 billion per year. Another billion or two from fixed segment and other forms of internet (WiMAX, EVDO, FTTH etc.)

Tags : govt of punjabinternet taxnational economypakistan economyPunjab govt
Mehjabeen Dar

The author Mehjabeen Dar

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