What is taxation of passive infrastructure providers to telecom operators?

Question

Telecommunication services are taxable at 19.5% sales tax in all provinces and ICT. What about infrastructure providers? Some big companies provide only passive infrastructure to these telecoms.

Answer 1

Based on the current regulatory framework in Pakistan, passive infrastructure providers (TowerCos) operate under a different tax treatment compared to telecommunication service operators. While mobile network operators (CMOs) are subject to a 19.5% sales tax on their services, the provision of passive infrastructure is treated differently.