Suspension of tax deductions on mobile bills to remain until next orders: SC

Suspension of tax deductions on mobile bills to remain until next orders: SC

Islamabad (Staff Report): The Supreme Court (SC) on Thursday extended the suspension period of tax deduction on mobile phone cards until further orders of the apex court.


While hearing a suo motu case regarding heavy taxes on prepaid calling cards, a three-member bench of the top court headed by Chief Justice Mian Saqib Nisar, ordered the government to remain suspended all taxes on mobile cards until further notice.

On June 11, the apex court had restrained the Federal Board of Revenue (FBR) and cellphone service providers from deducting withholding tax and other charges on mobile phone top-up cards.

In accordance with the court's orders, the FBR had withdrawn all taxes on mobile phone top-up cards for a period of 15 days.

The CJP took the notice on May 3 and had issued notices to the federal government and cellular companies, asking “under which head an amount of Rs40 is being charged on every Rs100 recharge.”

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.