Winner telecos have to pay Advance Tax !


Ministry of Finance has given clear message to the winning telecos of the 3G/4G auction that they have to pay 10% advance tax. After the second round of meetings in Ministry of Finance, telcos have come under extreme pressure.
Ministry of Finance has been pushing the Telcos to pay 10% advance tax after the 3g/4g auction. Companies have initially expressed strong reservations over the matter as they weren’t notified in the Information Memorandum issued before the auction.

There have been two meetings in Ministry of Finance and a third is to take place on Wedensday. These meetings have seen the Telcos asking about that advance tax payment and how it will be adjusted in the future payments.
With these developments it seems that the issuance of licenses will not take place on 17th May, which is celebrated as World Telecom Day. It is expected that this issue will be resolved before 22nd May as it was stated in the IM that licenses will be distributed within a month after the auction after payment of 50% bidding amount.

It is worthwhile to write here that differences exist among the successful bidding companies on the matter of advance tax. Sources tell that some companies are considering legal action against PTA and have consulted lawyers as well.