Telenor Finally Reacts to High Taxes, Tightening Regulations and Service Su

[darkinsky]

Telenor Finally Reacts to High Taxes, Tightening Regulations and Service Suspensions

Telenor yesterday decided to go hard on government against all the odds that telecom industry has been facing for past 2-3 years.

Telenor came up with an aggressive response when Lars Christian Luel, CEO, Telenor Pakistan, threatened Pakistani government to pull out of expected 3G auction by saying that company could find better places to invest as business case in Pakistan has weaken due to increased taxes, government-forced service suspensions and new regulations foe sale of new SIMs.

In an interview with The News and Express Tribune, Telenor CEO said that telecom companies aren’t money making machines and hence government will have to come up with rational policies to attract more investments. If not, then Telenor will pull out its investment – planned for 3G — from Pakistan to obtain better return on investment from other markets.

Lars said that taxes such as 19.5 percent FED and 15 percent WHT, are decreasing the value of 3G auction and the money that government can generate through sale of licenses because customers’ ability to spend on telecom services have reached the limits. He said that tightening regulations are further deteriorating the investment possibilities for Pakistan.

“If Pakistan is looking lesser attractive Telenor will invest somewhere else”, said Telenor CEO.

Lars, without clarifying on how to resolve the issue of un-registered SIMs, said that his company is put on back foot with court cases like the one which asks for a limit on number of SIMs on one CNIC.

It merits mentioning here that cellular companies never owned their role for selling fake SIMs during 2006-09, at a time when sale of un-registered SIMs was on rise. Subsequently, neither the government nor the telecom companies fixed those unregistered/illegal SIMs, instead all efforts were made just to streamline new sales, leaving behind the issue of old un-registered SIMs unresolved.

Talking about service shut downs, Telenor CEO said that cellular services remain the focus of government in curbing terrorism while overlooking all other elements. He said that its easier to buy a gun in Pakistan than SIM cards.

Telenor chief seemed utterly disturbed about imposition of 5 percent new tax on telecom services. He said that taxes in Pakistan were already three times higher than the neighbours like India. He was more furious on the fact that these taxes on telecom services are to be collected from poor people, while alleging that government has not properly taxed the rich class.

“Banning night packages is an area in which the government should not interfere and its act is in violation of human rights”, said Lars.

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so who said mian bradrans actually knew the business and trade?

 

[Thorough Pro]

Let them pull out, if they have to do business they have to do it as per our Law.

 

[AZADPAKISTAN2009]

Let them pull out of billion dollar revenue , instead paying few extra millions in taxes stupid CEO

 

[Leader]

post 2,3 is the exact reason why we fail to attract Foreign investment.

 

[Skywalker]

Jazbaatie baton may Hamelin khan pohnchadia hai. This budget was made by a munshi...u can expect n e thing.

 

[TaimiKhan]

Let them pull out, if they have to do business they have to do it as per our Law.

A law which should be justified.

Our tax system is pathetic. And the CEO is right.

I charge a 100 rupee card and in the 100 i pay 35 rupees as taxes only. Is it justified. a 35% tax ratio, so the company is getting a revenue of just Rs.65 in the 100 rupee card and on that 65 which they earn, they pay out their expenses from and whatever is left, it then again gets taxed.

So now just calculate how much tax we pay each year by loading a Rs.100 card.

Then i use a post pay connection, they deduct advance income tax, while i am paying income tax from my salary too and its deducted by the company i work in and they credit it into govt account. And when i use post pay connection, i again pay advance income tax, what the fcuk is that all about, when i complain, they say go the FBR office and reclaim it and you know well i will have to spend more giving away bribes and transportation cost to get back that adv income tax which they deduct in my post pay package.


Out whole govt system and its tax systems are pathetic.

 

[Biplab Bijay]

Off-topic : we have a company here. Its name is uninor. Is it related to telenor some how ?

On-topic : I dont know the tax system there. But I believe tax system should be such that, it will attract foreign investment, not the otherway around.

Peace.

 

[Saleem]

Let them pull out, if they have to do business they have to do it as per our Law.

thats what they are asking...is there a law in the land or just loot and khasoot.......

 

[M.harris]

Off-topic : we have a company here. Its name is uninor. Is it related to telenor some how ?

On-topic : I dont know the tax system there. But I believe tax system should be such that, it will attract foreign investment, not the otherway around.

Peace.

The company Telenor is a Norway based company working in Pakistan

 

[Biplab Bijay]

Uninor is an Indian mobile network operator based in Gurgaon, India. The company is a joint venture between Telenor Group, a telecommunications company headquartered in Oslo, Norway, and Unitech Group, an Indian real estate company. Telenor is in operational and managerial control of the company, which has been branded Uninor in the Indian market. So it is related to Telenor. I was right. I found in on wiki.

Peace

The company Telenor is a Norway based company working in Pakistan

 

[Hyperion]

In Pakistan SoP is like this: If some company actually pays tax, we make sure to tax it to an extent that it can no longer function, instead of concentrating on finding new streams of revenues.

What a pathetic place to be. I had several plans in the past about investing there, no more.

 

[Hyperion]

Taimi, the whole system is messed up. I don't even know if any part of it is salvageable anymore. In all probability it looks as if we will need to start with a clean slate......

A law which should be justified.

Our tax system is pathetic. And the CEO is right.

I charge a 100 rupee card and in the 100 i pay 35 rupees as taxes only. Is it justified. a 35% tax ratio, so the company is getting a revenue of just Rs.65 in the 100 rupee card and on that 65 which they earn, they pay out their expenses from and whatever is left, it then again gets taxed.

So now just calculate how much tax we pay each year by loading a Rs.100 card.

Then i use a post pay connection, they deduct advance income tax, while i am paying income tax from my salary too and its deducted by the company i work in and they credit it into govt account. And when i use post pay connection, i again pay advance income tax, what the fcuk is that all about, when i complain, they say go the FBR office and reclaim it and you know well i will have to spend more giving away bribes and transportation cost to get back that adv income tax which they deduct in my post pay package.


Out whole govt system and its tax systems are pathetic.

 

[Yogi]

Off-topic : we have a company here. Its name is uninor. Is it related to telenor some how ?

On-topic : I dont know the tax system there. But I believe tax system should be such that, it will attract foreign investment, not the otherway around.

Peace.

Yes Uninor is a JV between Telenor(67.25%) n Unitech Group(32.75%). As only 74% FDI is allowed in telecom sector.

Telenor is a Norwegian multinational telecommunications company which is owned by Norwegian Govt.

 

[Al Bhatti]

This is where we have reached after 60+ years. Keep going Pakistan. Pakistan is indeed going in the right direction and is in safe hands always.

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1 May 2013

The global flow of foreign direct investment, or FDI, a driving force in the globalisation process, is poised to stage a recovery in 2013 by hitting $1.4 trillion on the back of an improvement in the worldwide macro-economic environment, UAE Minister of Economy Sultan bin Saeed Al Mansouri said on Tuesday.

Speaking at the opening session of the Annual Investment Meeting, or AIM, which was attended by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the minister said FDI “requires an international investment system that effectively promotes sustainable development for all”.

Al Mansouri said FDI retained its solidity even during the global financial crisis, prompting many economies seeking to get out of the crisis to look at it as a basic priority. The year 2012 has witnessed movements of over $1.3 trillion worth of FDI inflows of which more than 52 per cent was directed to developing countries.

According to the United Nations Conference on Trade and Development, global FDI flows declined by 18 per cent in 2012.

Al Mansouri said the UAE is the second Arab and third regional best destination for attracting FDI. “As for qualitative level, the UAE ranked 9th globally on the index of attracting quality projects with high added value and density of knowledge. On the city level, Dubai has ranked third globally on the same indicator after cities of London and Paris.

FDI flow into the UAE is estimated to have surged 21 per cent to $9 billion in 2012 from $7.6 billion in the previous year.

Around 5,000 delegates, including over 40 ministers as well as investors and businessman from 80 Arab and foreign countries, are participating in the three-day forum at the Dubai International Convention and Exhibition Centre.

The opening session of the AIM, a global emerging market-led FDI conference and investment trade fair, was attended by Lt-General Musabbah Rashid Al Fattan, Director of the Office of the Vice-President and Prime Minister and Ruler of Dubai, and Khalifa Saeed Sulaiman, Director-General of the Protocols and Guesthouse Department, along with other dignitaries.

Sami Al Qamzi, director-general of the Department of Economic Development, said rising confidence in Dubai and the emirate’s efforts to facilitate business saw FDI inflows growing by 26.5 per cent to Dh29.4 billion in 2012 compared to the previous year. The “FDI into Dubai” data gathered by Dubai FDI also points to services remaining the chief magnet for FDI into Dubai and more investment flowing into larger projects, he pointed out.

Al Qamzi said Dubai registered a year-on-year increase of 14 per cent in its share of global FDI projects from 1.4 per cent to 1.6 per cent. He stressed the continuity of Dubai as a magnet for investment and its ability to provide excellent logistics services and provide the elements of success and durability to all foreign investments.

He said Dubai FDI was busy assisting 119 companies to set up in the emirate in 2012, as well as helping 46 companies grow and develop their existing investment in the emirate. This is a 114 per cent growth on 2011, during which the number of companies assisted was 77.

Following the session, Shaikh Mohammed visited the real estate exhibition held on the sidelines of the forum in which 220 companies from the UAE and other countries participating in the Investment Forum showcase their latest in the real estate field. He familiarised himself with the capabilities of these companies and the investment opportunities they have in the field of real estate.

Global FDI flow to hit $1.4 trillion - Khaleej Times

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[Baby Leone]

lol these MNCs dont want to pay taxes they just want to mint money from Pakistan.....