Lahore(June 11, 2018): Chief Justice of Pakistan Mian Saqib Nisar on Monday suspended the tax deduction on mobile cards by companies and Federal Board of Revenue (FBR).
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.”
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“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.
The apex court has provided a two-day deadline to follow the orders pertaining to the suspension.
It may be recalled that on May 03, Chief Justice of Pakistan Mian Saqib Nisar had taken notice of high levy is being charged on mobile phone cards in the country.
The chief justice remarked that Rs 40 was being cut on Rs 100 card. He asked under what heads the levy was being charged.
The apex court would hear the case next week.
Currently, the consumers are paying 42 percent tax, including 19.5 percent FED, 12.5 percent WHT and 10 percent service/ maintenance charges on every Rs.100 card.
A mobile user, who recharges Rs 100 card, is paying Rs 35.62 in taxes. Further, the user is paying full amount even if the call drops after 10 seconds.
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