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FBR files reply in SC on tax on mobile card

ISLAMABAD: The Federal Board of Revenue (FBR) has filed its reply in the Supreme Court (SC) in respect of suo motu notice regarding tax deduction on mobile card calling card.
The FBR has said in its reply that despite levying of tax, use of mobile phone in Pakistan is cheaper than several other countries in the world and ratio of taxes on mobile consumers is lower than Bangladesh, Malaysia, Turkey, Thailand and Indonesia.
The FBR has also said in its written reply that several kinds of fees, levies and other charges are received from mobile phone users in other countries. Under the head of withholding tax, a sum of Rs 4b to 4.5 billion is deducted from mobile phone users monthly.
According to FBR, Rs 51 billion was deducted against withholding tax from the mobile phone users during the financial year 2016-17.
The taxes ratio was scaled down gradually keeping in view the problems being faced by the mobile phone users.
As per FBR, tax ratio stood at 15 percent during 2013-14 and it comes to 12.5 percent during the 2017-18. Federal excise duty on mobile phone was reduced to 17 percent.
Overall Rs 944 billion are collected annually under the head of withholding tax. Rs 944 billion constitute 70 percent of direct tax collection. —Online

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