The Supreme Court of Pakistan has stopped federal authorities from deduction of mobile phone card tax from recharge through easy load or scratch cards till further orders.
This SC order came during the hearing of case related to illogical and high tax deduction from uploading of mobile phone balance.
Chief Justice Mian Saqib Nisar gave clear orders to the authorities concerned to ensure implementation of its order in two days.
It further directed that a comprehensive policy regarding mobile phone card tax should be charted out.
CJP Justice Nisar questioned how a person who doesn’t fall within tax net is made to pay taxes on mobile phone top-up. He further said that mobile phone card tax should be levied from a person whose cell phone use exceeds the fixed limit.
The judiciary also said that Rs38.64 is deduced on account of different taxes from every recharge of Rs100, which is unreasonable and illegal.
At the previous hearing, Attorney General Ashtar Ausaf informed the judges that mobile phone companies charge 19.5 per cent sales tax, 10 per cent service charges and 12.5 per cent withholding tax (WHT).
Hearing this, Justice Nisar asked how withholding tax can be applied to mobile phone cards. It is unfair to charge withholding tax from consumers who are not entitled to pay taxes.