Mobile phone service providers have started the implementation of a Supreme Court (SC) order to remove service/maintenance charges on pre-paid cellular scratch cards, Pakistan Telecommunication Authority (PTA) spokesperson Khurram Mehran said on Monday.
On a scratch card of Rs100, a user will now receive a balance of Rs88.9 instead of Rs76.94.
In a earlier hearing this year, the apex court had told mobile phone service providers that they could apply a 12.5 per cent withholding tax, said Mehran. However, the court had told them to abolish the 10 pc administrative/service charges.
In April this year, the top court restored deduction of withholding tax and sales tax on pre-paid cellular scratch cards by vacating the earlier suspension order by ex-Chief Justice Saqib Nisar.
The SC, however, stated that the telecom companies were forbidden to impose any service/maintenance charge.
“The order dated 11th June, 2018 did not record reasons nor did it determine that the imposition of the taxes was without jurisdiction. We are also not persuaded to hold that the taxes were imposed without requisite legislation or that the six statutes contravened the Constitution,” read the order.
The order said the recovery of the taxes may therefore be resumed, adding: “However, the cellular telecom companies are not allowed to impose any service/maintenance charge thereon as they have elected not to impose these charges.”