SC abolishes tax deduction on mobile cards

ISLAMABAD: The Supreme Court of Pakistan has suspended tax collection on mobile cards.

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Last month, Chief justice of Pakistan (CJP) Mian Saqib Nisar had taken notice of the high levy charged on mobile phone cards in the country as he asked under which law Rs40 were being deducted from Rs100 mobile cards.

The chief justice questioned as to why such a huge amount was deducted by the private mobile companies and under what tax heads. The CJP issued notices to all the mobile telephone operators in the country and summoned the attorney general over the issue.

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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