Big News for Internet Users from the Supreme Court
The Supreme Court has ruled that Voice Communication through the Internet is exempt from Federal Excise Duty (FED). The judgment written by Justice Maqbool Baqir stated that Internet services and facilities were fully subsidized by the FED. Are exempt and nothing can be used to qualify or limit such an exception. The decision was made on appeal against the Islamabad High Court’s May 21, 2018 decision by the Islamabad Commissioner of Inland Revenue.
Internet services are exempt from the payment of FEDs under the Federal Excise Act (FEA) 2005. Appeal rejected, the tribunal held that Internet services exempt from federal excise duty and that the transmission of voice content via the Internet is exempt. The Islamabad High Court upheld the tribunal’s decision.
NetNet Company is an Internet Service Provider (ISP) and only charges money for that service, but users can use this feature for various purposes such as browsing and downloading. The Internet receives connectivity money. Federal excise duty on Internet service is zero and no payment is made or no allocation has been made so no duty can be charged.