Taxes Applicable on Ufone Services
Advance Income Tax (AIT)
Ufone as a provider of telephone and Internet service is designated under Section 236 of the Income Tax Ordinance, 2001 (ITO) to collect AIT from its customers. AIT collection applies on all modes of receipts, billings and recharges including Super Card family products subscriptions.
AIT collection is not required if the customer is specifically exempt under Section 236(4) of the ITO. If exempt from AIT, you should share related certification with the Ufone representative working for you, to have AIT excluded from your billing.
Service Tax (GST)
GST refers to provincial/territorial sales taxes or Federal Excise Duty (FED) applicable to Ufone services in different provinces and regions. GST is applicable to all kinds of telecommunication and allied services, including voice, data, SMS, and MMS.
The above taxes are applicable in different regions as per the following rates:
| Province/Region | GST (Applicable to use of voice, data, SMS, MMS & other services) |
AIT (Deducted on each recharge, including Super Card family products subscription) |
| Punjab | 19.5% | 15% |
| Sindh | 19.5% | 15% |
| Khyber Pakhtunkhwa (KPK) | 19.5% | 15% |
| Baluchistan | 19.5% | 15% |
| Islamabad (ICT) | 19.5% | 15% |
| Azad Jammu & Kashmir (AJK) | 19.5% | 15% |
| Erstwhile FATA & PATA merged with KPK | 19.5% | 0% * |
| Erstwhile PATA merged with Baluchistan | 19.5% | 0% * |
| Gilgit-Baltistan (GB) | 0% | 0% ** |
* The former tribal areas, now merged with KPK and Balochistan have been extended exemption from collection of AIT on mobile phone usage, vide FBR’s SR0 1213(I)/2018 dated 5 October 2018.
** Collection of AIT in GB has been suspended on the orders of Gilgit-Baltistan Council, vide notification F.No.3(5)2014/F.II-GBC dated 4 January 2018.
