ISLAMABAD ;Supreme Court’s order pertaining to suspension of tax charges on mobile card will be applicable from today (Thursday) as users will be able to charge full amount on mobile top-up.
Before the Supreme Court’s order, the federal and provincial governments were charging 12.5% as withholding tax, 12.5% as service charges while the provincial governments were receiving 19.5% as GST. As a whole, Rs35.72 were being deducted on a top-up of Rs100.
A 15-day relief is being provided to the consumers by the companies after which the Federal Board of Revenue (FBR) and mobile companies will constitute a new mechanism of tax deduction on mobile phone cards.
Earlier on Monday, Chief Justice of Pakistan Mian Saqib Nisar suspended the tax deduction from mobile phones “pre-paid calling cards and easy load” by companies and FBR.
The apex court had also provided a two-day deadline to follow the orders pertaining to the suspension.
CJP Saqib Nisar also orders to constitute a new policy for tax deduction on mobile phone cards as it is illegal to deduct a Rs37 tax for every recharge of Rs100.
According to a calculation, the 15-day relief to consumers will cost Rs75 billion loss to provincial governments and Rs48 billion to FBR.
Under these circumstances, FBI has appealed the Supreme Court to constitute a larger bench to take notice of the issue.