ISLAMABAD - Post Paid Mobile Phones subscribers have been given big relief from the Supreme Court of Pakistan over the issue of taxes.
The Supreme Court is removing additional charges on postpaid subscriptions, that are being paid to cellular companies in Pakistan.
Current taxes charged on postpaid subscriptions include a withholding tax of 12.5% and General Sales Tax (GST) at either 17.5% or 18.5%.
During a hearing, Chief Justice Pakistan discussed cellular service rates and the amount of tax paid on each subscription payment, saying that the incremental costs (Rs. 25 on a Rs. 100 recharge) paid on each recharge don’t exactly go to the FBR.
They are deducted as “service charges”, which according to the Chief Justice says are “not justified”. As for taxation, the government already receives tax when you make a call, so there’s no need for an additional deduction when paying for a balance recharge, responded an FBR lawyer.
Finally, the Supreme Court ordered the FBR to come up with a way to rightfully tax mobile users, so that only the people who are eligible to pay tax have to bear additional charges. Until the FBR comes up with something feasible, the postpaid taxes are likely to remain abolished.