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SC restores all taxes on mobile cards

SC restores all taxes on mobile cards
April 24, 2019
ISLAMABAD (92 News) – Announcing the verdict of suo moto notice, the Supreme Court on Wednesday restored of all taxes on mobile phone cards. Chief Justice of Pakistan Asif Saeed Khosa announced a short order, saying the top court would not interfere in the matters of public revenue and tax collection. The court also withdrew the stay order placed on the collection of mobile phone taxes while wrapping up the suo motu case. A three-member bench headed by the chief justice had today reserved its judgement in the case after a detailed hearing during which law officers for the federal and provincial governments presented their arguments. It is pertinent to mention here that now the consumers, after the verdict, would receive 75 rupees balance after the loading of 100 rupees mobile phone card. In June 2018, the top court had suspended the deduction of taxes on prepaid cards provided by mobile phone service providers. A SC bench headed by then CJ Nisar had suspended the deduction of taxes imposed on the top-up of prepaid cards by cellphone service providers and the Federal Board of Revenue (FBR). Former CJP Saqib Nisar had questioned how a person who doesn’t fall within tax net is made to pay taxes on mobile phone top-up. Tax should be levied from a person whose cell phone use exceeds the fixed limit, he added. A three-judge bench comprising of the then chief justice of Pakistan Mian Saqib Nisar, Justice Ijazul Ahsan and Justice Umar Ata Bandial, had heard the case at the apex court’s Lahore registry. On July 5, 2018, CJP Mian Saqib Nisar directed that the tax deduction on mobile phone cards will remain suspended until the next 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.