• Tuesday, January 21, 2020

Supreme Court restores tax collection on mobile phone cards

Discussion in 'Social & Current Events' started by ghazi52, Apr 24, 2019.

  1. ghazi52

    ghazi52 ELITE MEMBER

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    Supreme Court restores tax collection on mobile phone cards

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    Islamabad: Supreme Court of Pakistan has restored tax collection on mobile phone cards, saying the apex court will not interfere in this matter.

    A three-member bench of the apex court, headed by Chief Justice Asif Saeed Khan Khosa, heard the case pertaining to advance tax on cellphone cards.

    The apex court in June 2018 had suspended tax collection on mobile cards.

    The then Chief justice of Pakistan (CJP) Mian Saqib Nisar had taken notice of the high levy charged on mobile phone cards in the country as he asked under which law Rs 40 were being deducted from Rs 100 mobile cards.

    At that time, as per some reports, on the charge of a Rs 100 pre-paid mobile card, a 19.5 percent Federal Excise Duty (FED) was charged along with 12.5 percent withholding tax and 10 percent service/maintenance charge.

    According to statistics revealed by the Pakistan Telecommunication Authority in January last year, the number of mobile phone users stands at 144 million as compared to 142.5 million in October 2017.

    The Supreme Court (SC) on Monday asked if every citizen is able to pay tax and if a cart man would go to the Income Tax Commissioner to get refund on mobile phone card he had loaded.

    The SC observed that the government should act honestly on the tax matters and stressed that tax procedures should be made easy for citizens so that it could be determined by identity cards as to who was a taxpayer and who was not.

    The chief justice asked how many people demand refund of advance tax as they have to see when and how much tax would be applicable. He remarked that the court would also have to consider whether the government enforced the law correctly or not.

    A huge amount was withdrawn from the pockets of masses due to the law. On a court query, Attorney General for Pakistan Anwar Mansoor Khan said every client pay advance tax on a mobile card and a consumer on whom income tax was not applicable could demand a refund.

    The counsel for Pakistan Telecommunication Authority (PTA) said Rs90 billion tax was not collected due to suspension of one point of tax collection law by the apex court.

    The chief justice responded that the court could void a law but it could not suspend a law. Justice Qazi Faez Isa remarked that the court would also have to review utility tax along with income tax.

    Justice Ijazul Ahsan remarked that the court had only suspended the recovery of withholding tax but not suspended the law. According to law if a person was not applicable of tax, he would have to get a certificate from Commissioner Income Tax, he added.

    He remarked that the state should be sincere with its citizens. He remarked that advance tax was income tax according to definition and how a consumer could pay tax who did not fall in the category of taxpayer.

    He remarked that the court wanted that the government should form such a mechanism that non-filers should not have to pay the tax.
     
  2. Peaceful Civilian

    Peaceful Civilian ELITE MEMBER

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    Government can collect 30 billion tax from mobile every month. Everybody should pay tax for betterment of Pakistan.
    Supreme court should not interfere in government matters like tax collection.
     
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  3. H!TchHiker

    H!TchHiker SENIOR MEMBER

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    So, dramazai of Saqib nasir is being revered ...
     
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  4. VCheng

    VCheng ELITE MEMBER

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    The honorable SC should have never interfered in such matters of taxation to begin with!
     
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  5. volatile

    volatile SENIOR MEMBER

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    Lol i feel sorry for baba Rehmta
     
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  6. waqasmwi

    waqasmwi FULL MEMBER

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    A well deserved slap on the face of Saqib Nisar
     
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  7. Stealth

    Stealth ELITE MEMBER

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    People are willing to pay tax on the phone but not 100/65
     
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  8. Jf Thunder

    Jf Thunder ELITE MEMBER

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    so, the call prices that were raised
    will they go down since the tax has been reintroduced
     
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  9. bananarepublic

    bananarepublic FULL MEMBER

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    Probably not as government might want to collect nas much tax they can
     
  10. Jf Thunder

    Jf Thunder ELITE MEMBER

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    so instead of broadening the tax net
    they are instead forcing the already tax payers to pay more tax
     
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  11. Yaseen1

    Yaseen1 SENIOR MEMBER

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    in no good country of the world judiciary interferes in economic matter,this is bad for us that judges are overriding govt decisions and are misusing their power
     
  12. Men in Green

    Men in Green FULL MEMBER

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    Tax is good, but it should be lowered 35 on 100 recharge is to much think about poors.
     
  13. Syed1.

    Syed1. SENIOR MEMBER

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    Tax should be standardized across the board at 15-17% for everything. On somethings Pakistanis pay 30-40% tax on others they pay merely 5-10%
     
  14. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

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    Eventually people will understand why I want people to pay tax