Cyber Internet Services, operating as StormFiber, has filed a petition in the Peshawar High Court contesting the 19.5 per cent sales tax imposed on internet-based cable TV services under the amended Khyber Pakhtunkhwa Sales Tax on Services Act, 2022. The company, through Advocate Nouman Muhib Kakakhel, named the Khyber Pakhtunkhwa government, KP Revenue Authority, and the secretaries of law and finance as respondents.
The petitioner argued that amendments made through the KP Finance Act, 2025, were unconstitutional and discriminatory. StormFiber stated that it is a licensed provider of fibre-to-home internet and television services, holding multiple licences from the Pakistan Telecommunication Authority (PTA) and the Pakistan Electronic Media Regulatory Authority (PEMRA) for both Cable TV Distribution Services (CATV) and Internet Protocol Television (IPTV).
According to the petition, CATV and IPTV are both regulated by PEMRA but differ in delivery methods — traditional cable versus internet-based transmission. Initially, a two per cent tax applied to CATV services and 19.5 per cent to internet-based TV services. The 2025 amendments, however, extended the higher 19.5 per cent rate to telecommunication providers offering TV services, while traditional cable operators remained taxed at only five per cent.
StormFiber contended that the amendment violated constitutional principles of equality and fairness under Articles 4, 8, 18, 25, and 77, as it taxed identical services differently based on the provider’s identity rather than the nature of the service. The company maintained that the measure unfairly burdened integrated service providers offering internet, TV, and telephony — commonly known as “Triple Play Services.”
In August, the GSM Association (GSMA) reported that Pakistan’s mobile service tax rate, standing at 33 per cent including 18 per cent sales tax and 15 per cent advance tax, is the highest in the region. The report said these taxes hinder digital growth and foreign investment, urging the government to review the rates. In comparison, regional mobile service taxes are 26 per cent in Nepal, 23 per cent in Sri Lanka, and 18 per cent in India, with even lower rates across Southeast Asia.
