CJP taken Suo Motu notice on imposition of 40% taxes on Rs 100 mobile cards

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Chief Justice of Pakistan (CJP) Justice Saqib Nisar has taken Suo Motu notice on imposition of 40% taxes on Rs 100 mobile cards. The 40% tax on 100 PKR mobile cards is being imposed by all cellular networks in Pakistan.

Chief justice also issued a notice to the Attorney General of Pakistan to explain what amount is being deducted or taxed on a calling card and easy load of Rs. 100. He expressed his grave concern that why such a huge amount is deducted by the private mobile companies and under what rule this tax is applied.

The Chief justice has also issued notices to all the cellular companies including Mobilink, Ufone, Zong, Telenor and asked asking “under which head an amount of Rs. 40 is being charged on every Rs. 100 recharge.” In today’s notice, CJP has asked FBR and all local telecom operators for their viewpoint on the matter. The case will be heard in the Supreme Court of Pakistan on Tuesday.

Currently, the consumers are paying 42 percent tax, that includes three taxes, 19.5 percent Federal Excise Duty (FED), 12.5 percent With Holding Tax (WHT) and 10 percent service/ maintenance charges on every Rs.100 card.

Earlier, the Senate’s Standing Committee on Finance, Income, and Financial Affairs proposed to put the ban on all kinds of night packages provided by cellular companies. During a meeting, Senator Siraj-ul-Haq recommended that gross sales tax and sales tax imposed on cellular users should be withdrawn and a ban should be imposed on all kinds of night packages.

However, we will have to wait until coming Tuesday to see if any tax relief will be given to the common man of Pakistan.

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