The Viewz

Here’s How Government Has Actually Reduced Tax Collection for SmartPhones: Muhammad Bilal DIRBS – a system to regulate the import of commercial and personal smartphones into the country – generated around PKR 6.5 billion in taxes. The numbers show that the new system has apparently lowered the tax collection by around PKR 7 billion due to reduced consumption of data services by end-users. This essentially means that DIRBS, while it has tangible benefits, has also actually impacted the uptake of smartphones and has resulted into lower data usage by the consumers, which resulted into decreased tax collection by the government on data services. ARPU (Average Revenue Per User) for a feature phone is around PKR 239 while the ARPU on 3G network is around PKR 370, which goes up to PKR 531 for a 4G subscriber. GST share from this ARPU for 2G, 3G and 4G user stands are PKR 61, PKR 95 and PKR 136 respectively, clearly indicating that a user on a 3G or 4G networ...