The Supreme Court (SC) today has suspended the deduction of taxes imposed on the top-up of prepaid cards by cellphone service providers and the Federal Board of Revenue (FBR). Moreover, SC gave the time of two days to both institutions to act on the orders. As SC Suspends Tax deductions on Prepaid Mobile Phone Cards, no doubt, it will be a great relief to the people of Pakistan.
SC Suspends Tax deductions on Prepaid Mobile Phone Cards
A three-judge bench comprising Chief Justice of Pakistan (CJP) Mian Saqib Nisar, Justice Ijazul Ahsan and Justice Umar Ata Bandial, was hearing the case at the SC Lahore registry.
Earlier it was told that for every cellular charge, 5.5 percent was deducted as a withholding tax, 19pc as sales tax and another 10pc as services charges have been deducted which the court had described as illegal.
The court said that ordinary cell phone users were “being looted” due to the taxation measures in place on prepaid cards.
In a subsequent hearing, the bench had demanded a clarification on whether withholding taxes were being collected as per law. “The law for withholding taxes appears to be imperfect,” Justice Ahsan had remarked. “Withholding taxes cannot be levied on a laborer who earns Rs100 a day. How can we collect withholding taxes from daily wage earners?” he added.
CGP gave two days for the order to be implemented at a hearing of the suo motu case at the apex court’s Lahore Registry. “Rs38.08 are deducted on a prepaid mobile card of Rs100,” CGP Nisar remarked. “This is illegal.”