Government May Consider Further Rationalization Of Taxes On Mobile Cards

We all know that the Supreme Court took suo motu notice and ordered suspension in deduction of taxes on prepaid mobile phone cards back in June 2018. This step was taken under the supervision of former CJP Justice (retd) Saqib Nisar. However, the bad part of the news is that SC restored all the taxes on 25th April 2019. Recently, we have come to know that the government may consider further rationalization of the taxes on mobile cards in the upcoming Finance Bill 2019-20.

Rationalization Of Taxes On Mobile Cards May Be Considered In Finance Bill 2019-20- Ministry Of Finance 

According to official documents submitted in the Parliament, the Ministry of Finance has stated that further rationalization of the taxes on mobile cards may be considered in the upcoming Finance Bill.

 The Ministry has negated a question while saying that it is incorrect that there is 50 percent tax on the purchase of Rs 100 phone card. There is no such huge tax being charged, maintained by the Ministry.

 Supreme Court of Pakistan has restored all taxes on the mobile phone on 25th April 2019. However, there is a feeling among the mobile subscribers that cellular companies have increased voice call and SMS tariffs.

 The issue was also raised in the last meeting of the Senate Standing Committee on Information Technology and Telecommunication held last week.

Chairman Pakistan Telecommunication Authority (PTA) has assured that an increase in tariff is allowed. He further said that there is a proper mechanism for increasing tariff and if any of the cellular company, violates, action would be taken against them.