ISLAMABAD – Chief Justice of Pakistan Mian Saqib Nisar on Thursday ordered that suspension of tax deduction on mobile phone cards top-ups will continue until further orders of the Supreme Court.
The top judge stated this while hearing a separate case regarding increasing prices of petroleum products.
On June 11, the apex court suspended all taxes deducted by cellular companies and Federal Board of Revenue (FBR) on mobile phone recharge while hearing a suo motu case at Lahore Registry.
https://en.dailypakistan.com.pk/headline/supreme-court-suspends-tax-deduction-on-mobile-phone-cards/
Following the orders of the Supreme Court, FBR official had announced to not charge any tax on top-ups for a period of 15 days.
Amid the FBR-given 15-day period has expired, the chief justice remarked that decision to suspend tax deduction was not for a limited time period, adding that the orders will continue until further orders.
CJP Nisar declared, “The decision to suspend tax collection on mobile cards will hold until then.
Earlier, the consumers were paying 42 percent tax, including 19.5 percent FED, 12.5 percent WHT and 10 percent service/ maintenance charges on every Rs.100 card.
The CJP took the notice on May 3 and had issued notices to the federal government and cellular companies, asking “under which head an amount of Rs40 is being charged on every Rs100 recharge.”
Earlier, 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.
