ISLAMABAD – Chief Justice of Pakistan Mian Saqib Nisar on Thursday took a suo moto notice of the withholding tax imposed on mobile recharge.
The CJP issued notices to the federal government and cellular companies, asking “under which head an amount of Rs40 is being charged on every Rs100 recharge.”
Seeking replies from the respondents, the apex court adjourned the hearing till Tuesday.
Currently, the consumers are paying 42 percent tax, including 19.5 percent FED, 12.5 percent WHT and 10 percent service/ maintenance charges on every Rs.100 card.
Earlier in the day, the Senate’s Standing Committee on Finance, Income and Financial Affairs proposed to put the ban on all kinds of night packages provided by cellular companies.
During a meeting, Senator Siraj-ul-Haq recommended that gross sales tax and sales tax imposed on cellular users should be withdrawn and a ban should be imposed on all kinds of night packages.
Farooq Hamid Naek chaired the meeting to consider and finalise the recommendations of the committee for the Finance Bill, 2018. The committee proposed the ban on night packages which include SMS, calls and internet packages.
While the committee recommended sending the matter of night packages to Ministry of Information Technology and Pakistan Telecommunication Authority (PTA), it put off the matter related to advance tax on mobile phone recharge.
Senator Muhammad Ateeq Shiekh during the meeting said, consumers, have to pay Rs28 on Rs100 card which is unfair. The government should remove advance and withholding tax being charged on Rs100 mobile card, he demanded.
