Do you want to understand how the taxes are applied to your StormFiber bill? Read this article. After reading this article, you will be able to fully understand the taxes in your StormFiber bill.
Please see my bill. It’s for the billing month of June 2020.
You can click on the pictures to see full resolution picture.
StormFiber sends bills on your registered email address and also on your registered cell phone number via SMS.
The first thing to note is that the bill gets generated on the 1st of every month. The due date is around ten days later. There is a late payment surcharge too. It was not there before. It looks like StormFiber has introduced this surcharge starting June 2020.
The Sales Tax on Internet Services charged by Punjab province is 19.5%. The Sindh, KPK, Balochistan, and AJK governments also charge a similar 19.5% tax on internet services. Other taxes charged are Sales Tax on Telephone Services, Sales Tax on TV Services. These are provincial government taxes and vary from one province to another.
PTCL has this web page on its website which shows all these taxes in a table.
Federal Government Taxes
The federal government charges Advance Income Tax at a rate of 12.5% on internet services. It is applied to a sum of internet package charges plus provincial sales tax on this package.
If your telephone charges (telephone charges + provincial sales tax) become higher than 1000 PKR then there will be a 10% Advance Income Tax on [(telephone charges + provincial sales tax) minus 1000 PKR].
As you can see in Figure 1 that I’ve got a Double Typhoon 10 Mbits/s package and its charges are 1649 PKR. The provincial tax on internet services will be 1649 PKR x 0.195 = 321.555 PKR.
The federal advance income tax on internet services will be (1649 PKR + 321.555 PKR) x 0.125 = 1970.555 PKR x 0.125 = 246.32 PKR.
The provincial sales tax on telephone services will be 150 PKR x 0.195 = 29.25 PKR.
The total provincial sales tax will be 29.25 PKR + 321.555 PKR = 350.805 PKR ~ 351 PKR.
Let’s say you make phone calls worth 1200 PKR. Add 150 PKR Storm Phone monthly line rent, you owe 1350 PKR to Storm Fiber. The provincial government tax on this amount will be 1350 PKR x 0.195 = 263.25 PKR. The federal advance income tax will be [(1350+263.25)-1000] x 0.10 = 61.325 PKR.
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