SC suspends additional tax on mobile phone cards

Islamabad Politics Report/Moazzam Raza Tabassam: Supreme Court of Pakistan has suspended the additional tax on the mobile phone cards, also ordered to devise a comprehensive policy regarding tax on the mobile phone cards.

Hearing a case at Lahore Registry of Supreme Court on Monday, the Chief Justice of Pakistan, Mian Saqib Nisar gave mobile phone companies two days to implement court’s order.

Chief Justice said that collecting funds from persons, outside the tax net is illegal.

Chief Justice of Pakistan Justice Mian Saqib Nisar ordered the suspension while heading a three-judge bench hearing a suo motu case regarding an increase in taxes on pre-paid scratch cards at the top court’s Lahore Registry.

“Taxes should be taken from users whose mobile phone usage is above the set limit,” Justice Nisar remarked during the hearing.

“Service providers and Federal Bureau of Revenue (FBR) charge taxes on pre-paid scratch cards and are looting people,” the bench remarked.

“It is illegal that Rs64.38 are charged as taxes on a Rs100 pre-paid scratch card,” the bench further stated.

Last month, the CJP had ordered federal and provincial governments and the FBR to respond as to why so many taxes were being deducted on pre-paid scratch cards.

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