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CBR Clarification: No Excise Duty Levied on Data and Internet Services

ISLAMABAD (June 10 2006): The Central Board of Revenue (CBR) has clarified that excise duty has not been levied on data communication and internet services in the 2006-07 budget. The Board on Friday said that telecommunication services would continue to be liable to excise duty in 2006-07.

Telecom services have always been subject to levy of excise duty collected in the manner of sales tax and this position has not been altered in the budget. The only two new telecomm services brought in the excise duty regime are vehicle tracking service (VTS) and burglar alarm service.

It has also been clarified that excise duty has not been levied on data communication services including internet and other value-added data services, which continue to enjoy exemption from excise duty. Furthermore, no provision for any checking through excise inspectors has been introduced in the sales tax law, the Board added.

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