The Sindh High Court has abolished the federal excise duty FED on Phone Call of 75 paise lasting more than 5 minutes. It also declared it as unconstitutional.
According to a report in a national newspaper, the provincial court has settled a dispute between the federal and provincial governments over the imposition of taxes on telecom providers.
Pakistan Mobile Communications Limited, Pak Telecom Mobile Limited, and Telenor Pakistan applied to the SHC for federal excise duty on phone calls. It was originally enact under this year’s Finance Bill. The main argument of the petitioners was that the collection and recovery of federal excise duty on phone calls in Sindh area is a violation of the law.
The SHC ruled that the constitution did not allow two taxes in connection with the same function. However they were also impose by two separate bodies.
The provincial court remove tax after clarifying that the federal government is not legally allow to issue federal charges against telecom providers. ?It fall under the jurisdiction of the provincial government in principle.
The federal tax on phone calls lasting more than five minutes was originally introduce under the Finance Bill. It generate Rs. 15 billion in the current financial year
