Supreme Court’s decision to suspend mobile taxes came as music to the ears of every mobile user, until post-paid users realized that it was applicable only to prepaid users. Since the 13th of June, prepaid users are relishing the benefit offered to them. In contrast, post-paid users in Pakistan dwell in a sense of injustice and bias.
Post-paid users have certainly not been shy in their complaints and disappointment to which mobile companies claim that they are merely following the order of the Supreme Court which specifically mentions prepaid service only. Having said that, mobile companies have requested further clarity on the issue and are still awaiting a response.
Post-paid users in Pakistan are currently being taxed 17.5-18.5% GST and 12.5% withholding tax. Post-paid users believe that they have always had to pay in excess to prepaid users to attain the same services. Despite being a small portion of all users, post-paid users have an average revenue much larger than prepaid users. They call for the discrimination shown towards them to end.
Possible Solutions to Please Post-paid Users in Pakistan
The Supreme Court has tasked the FBR to devise a method to only tax those mobile users that come under the tax net. Until then mobile taxes are expected to remain suspended. The right thing to do would be to adopt the same policy for both prepaid users and post-paid users. Either taxes for both customers should be suspended or an equal reduced tax should be imposed on both users. While figuring out the solution, it must be kept in mind that the federal government is at loss of a sum of RS.280 million per day due to the suspension of the taxes according to Supreme Court order.