The Supreme Court has ruled that payments made by the Universal Service Fund (USF) to telecom companies for services in underserved areas are not subject to tax deductions under Section 153(2)(b) of the Income Tax Ordinance.
According to USF officials, the Fund presented its legal position with supporting facts and evidence during the proceedings. After reviewing the case, the court ruled in USF’s favour and set aside the tax order issued by revenue authorities.
The ruling is expected to support USF’s efforts to expand telecom and digital connectivity in remote parts of Pakistan. The Fund aims to bring reliable internet and communication services to communities that remain underserved.
Following the judgment, USF plans to focus on accelerating network expansion in unserved and underserved areas. This includes improving access to high-speed broadband and extending telecom infrastructure across the country.
USF described the decision as an important step toward the government’s vision of a “Digital Pakistan” and a “Digital Nation.” The Fund also thanked the Ministry of Information Technology and Telecommunication (MoITT) and the Pakistan Telecommunication Authority (PTA) for their guidance and support during the legal proceedings.