ISLAMABAD – Post Paid Mobile Phones subscribers have been given big relieffrom 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 taxof 12.5% and General Sales Tax (GST) at either 17.5% or 18.5%.
During a hearing, Chief Justice Pakistan discussed cellular service ratesand the amount of tax paid on each subscription payment, saying that theincremental costs (Rs. 25 on a Rs. 100 recharge) paid on each rechargedon’t exactly go to the FBR.
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They are deducted as “service charges”, which according to the ChiefJustice says are “not justified”. As for taxation, the government alreadyreceives tax when you make a call, so there’s no need for an additionaldeduction when paying for a balance recharge, responded an FBR lawyer.
Finally, the Supreme Court ordered the FBR to come up with a way torightfully tax mobile users, so that only the people who are eligible topay tax have to bear additional charges. Until the FBR comes up withsomething feasible, the postpaid taxes are likely to remain abolished.
