PBC proposes taxes to meet Rs4 billion annual deficit

 JournalismPakistan.com |  Published: 14 May 2015

The Pakistan Broadcasting Corporation has suggested implementing taxes to alleviate a significant annual deficit. This includes a proposed cess on vehicle registrations and mobile phone sales.

Summary

ISLAMABAD: Pakistan Broadcasting Corporation (PBC) has proposed electronic cess on registration of new vehicles or imported vehicles and purchase of new mobile phones to meet the Rs4 billion annual deficit. Director General PBC Imran Gardezi informed the sub-committee of Public Accounts Committee Thursday that the proposal to levy Rs4,000 to Rs5,000 on registration of a vehicle was under consideration of the federal government. The committee headed by Rana Afzal Hussain examined the Ministry of Information and Broadcasting for the year 1996-97. The committee asked if Radio Pakistan has any business strategy to make itself profitable. Gardezi said that the income of Radio Pakistan generated through advertisements has increased from Rs192 million to Rs332 million. Although Radio Pakistan generated Rs334m in 2013-14, its expenses had also been continuously increasing as a result government had to provide it with Rs3.7 billion as subsidy that year. He said the PBC paid Rs1 billion annually as pension to its retired employees. He further informed the committee that the proposed business plan would not help cover losses of billions of rupees. The PBC might request the Ministry of Information and Broadcasting to allow it to have a share in the TV licence fee of around Rs 10. Another proposal has been sent to Ministry of Information requesting them to allow levying from 0.5 to 1 percent radio cess on purchase of new mobile phones.