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No More Tax On Mobile Cards: Supreme Court Issues Order

By Abdul Hadi — Published on 13/06/2018
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Supreme Court of Pakistan has finalised the issue of tax deduction on mobile calling cards by issuing the written order to the concern authorities not to deduct tax or service charges on mobile cards or loads at all.

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Earlier the Chief Justice Supreme Court of Pakistan, Saqib Nisar, condemned the levy of tax on mobile calling cards and said why a common man should bear the heavy taxes on mobile cards and balances when he does not fall into the category of the taxpayer. Only those should be charged with tax who consumes too much balance.

According to sources, the written order has already been issued by the Supreme Court of Pakistan, and the order will take effect from midnight today (11:59 PM – 13th June 2018). From midnight today, the cellular service users will get Rs. 100 as a whole on recharge of Rs. 100 calling card or mobile load.

However, SC has made this order conditional for few days. The customers will get this initial relief for 15 days only as FBR along with mobile phone companies and other stakeholders have to determine how to tax customers who come within the tax net.

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Till the concerned authorities find a solution, SC suspended all type of taxes and directed tax authorities to come up with proposals and implementation strategy that will ensure that those who do not come in this tax net are not charged any taxes.

It worth mentioning here all type of telecom services, i.e. SMS, voice calls, video calls, mobile internet and other value-added services are also exempt from taxes. According to initial reports, this tax exemption will result in yearly loss of at least Rs. 123 billion to the provincial and federal government. Rs. 75 billion loss will share by the provincial governments while remaining Rs. The federal government will share 48 billion.

About Author

Written by
Abdul Hady is a content expert on topics related to the dynamic and ever-changing entertainment and technology industries. He becomes an expert in multimedia content development and distribution because of his dedication to researching how these two rapid markets overlap.

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