No tax deduction on mobile cards until next orders: CJP

ISLAMABAD (92 News) – Chief Justice of Pakistan Mian Saqib Nisar on Thursday directed that the tax deduction on mobile phone cards will remain suspended until the next orders. A three-member bench headed by the chief justice heard a suo moto tax deduction on Mobile cards case. During the proceedings, he clarified that the court had not suspended the deduction of taxes imposed on mobile phone cards by companies and the Federal Board of Revenue (FBR) for only 15 days. The top 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. 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 that 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.