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SC suspends tax deduction on mobile cards

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ISLAMABAD – Chief Justice of Pakistan Mian Saqib Nisar on Monday suspended the tax deduction on mobile cards by companies and Federal Board of Revenue (FBR).

The apex court has provided a two-day deadline to follow the orders pertaining to the suspension.

During the hearing of the case, the court remarked, “The public is being looted here. How can tax be received from a street vendor? Deduct tax from the person whose mobile phone usage is more than set limits.”

“How can tax be received from a person who does not come in the tax net? It is illegal to provide Rs64.38 to a person who loads Rs100 card. A comprehensive policy should be made over the tax deduction,” directed the court.

At present, as per some reports, on the charge of a Rs100 pre-paid mobile card, a 19.5 percent Federal Excise Duty (FED) is charged along with 12.5 percent withholding tax and 10 percent service/maintenance charge.

According to statistics revealed by the Pakistan Telecommunication Authority in January this year, the number of mobile phone users stands at 144 million as compared to 142.5 million in October 2017.

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