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Supreme Court Suspends "Mobile Tax Cuts" as illegal on Prepaid Mobile Load

AsianLion

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Congratulations Pakistanis, no mobile tax cut anymore, two days to implement it, finally a great decision for Pakistanis by Chief Justice Saqib Nisar

Supreme court suspends 'exorbitant' tax on prepaid mobile bills

LAHORE: The Supreme Court on Monday suspended ‘exorbitant tax deductions’ on prepaid mobile cards.

Chief Justice of Pakistan (CJP) Saqib Nisar gave two days for the order to be implemented at a hearing of the suo motu case at the apex court’s Lahore Registry. “Rs38.08 are deducted on a prepaid mobile card of Rs100,” CJP Nisar remarked. “This is illegal.”

Such high taxes on prepaid mobile bills amount to exploitation: CJP

Justice Ijazul Ahsan said a policy on levying tax ought to be formulated. “How can a hawker be brought into the tax net?” he said.

Taking notice of deductions as tax, the Supreme Court in May had sought replies from all telecommunication companies and Attorney General of Pakistan Ashtar Ausaf Ali. In a subsequent hearing, the bench had demanded a clarification on whether withholding taxes were being collected as per law. “The law for withholding taxes appears to be imperfect,” the top judge had remarked. “Withholding taxes cannot be levied on a labourer who earns Rs100 a day. How can we collect withholding taxes from daily wage earners?” he added.

SC takes suo motu of mass tax imposed on prepaid mobile bills

In May 2017, the FBR was considering expanding the scope of 0.4% tax on banking transactions conducted by non-filers of tax returns to mobile banking services in the budget amid an outcry from telecom operators against heavy taxes eating up over one-third of revenue.
 

AsianLion

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SC suspends tax deduction on mobile cards

LAHORE: The Supreme Court of Pakistan has suspended tax collection on mobile cards here on Monday.

Last month, 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 Rs40 were being deducted from Rs100 mobile cards.

A three-member bench of the SC heard the suo motu case at the Lahore Registry. The CJ observed that there should be a difference between those who pay their taxes and the evaders.

Justice Ijaz Ul Ahsan questioned Chairman Federal Board of Revenue, whether a person who does not fall under the tax net can be charged?

On this, the FBR chief explained that collection of service charges from mobile phone users is the policy of telecom companies.

At present, as per some reports, on the charge of a Rs100 pre-paid mobile card, a 19.5 percent Federal Excise Duty (FED) is 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 this year, the number of mobile phone users stands at 144 million as compared to 142.5 million in October 2017.
 

Sugarcane

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Awam pehle hi tax nahi daiti, jo thora bohat revenue hai woh cheap justice apnay publicity stunt k liya khatam kar raha hai.
 

Sugarcane

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36 rupees is 100 ? ye tax nhi daka hai
Bhai, when people doesn't pay direct taxes and on top of that demand subsidy on every service and facility then this amount is still peanut, on top of that same idiots go on to elect corrupt people. Btw FED is 19.5%, while 12.5% is WHT which you can get back if you're filing tax returns. 10% Service/Maintenance looks like telecom company's own charges which they'll start charging in call rates. So, instead of encouraging people to file tax returns to get the WHT back And asking FBR to introduce system to facilitate the poor/uneducated people to file returns the cheap justice played publicity stunt. Government will recover the revenue lost by increasing taxes on other things.
 

Imran Khan

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Bhai, when people doesn't pay direct taxes and on top of that demand subsidy on every service and facility then this amount is still peanut, on top of that same idiots go on to elect corrupt people. Btw FED is 19.5%, while 12.5% is WHT which you can get back if you're filing tax returns. 10% Service/Maintenance looks like telecom company's own charges which they'll start charging in call rates. So, instead of encouraging people to file tax returns to get the WHT back And asking FBR to introduce system to facilitate the poor/uneducated people to file returns the cheap justice played publicity stunt. Government will recover the revenue lost by increasing taxes on other things.
how can a shopkeeper chabri wala housewife student go and refund it
 

Sugarcane

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how can a shopkeeper chabri wala housewife student go and refund it
File tax returns, get refund. As I said CJ if wanted to do justice instead of publicity stunt then he should have ordered fbr to facilitate the illiterate people in return filing.
 

Imran Khan

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File tax returns, get refund. As I said CJ if wanted to do justice instead of publicity stunt then he should have ordered fbr to facilitate the illiterate people in return filing.
ap kis zamany ki baat ker rahy hain once you fill a simple farm FBR apka jeena haram ker de gi notices of false sms bheg bheg ker . its not easy as you said to get back anything from FBR .
 

Complex Variable

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Got this in an email from FBR. Mazdour k 50,100 k easy load pa 38 PKR cut kari jao, aur ameero k haram k paisay halal krnay k liya bill pass krtay jao.

Agar CJ na notice la e liya hai tou us mai b qeeray e nikalnay hain? View attachment 479700
 

Sugarcane

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ap kis zamany ki baat ker rahy hain once you fill a simple farm FBR apka jeena haram ker de gi notices of false sms bheg bheg ker . its not easy as you said to get back anything from FBR .
I am filing returns since 2005 when it was paper based, tell this story to someone else. The rule is simply pehle jo revenue 144 million mobile users se collect hota tha ab wo few millions ki g mai se nikala jaay ga
 

Imran Khan

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I am filing returns since 2005 when it was paper based, tell this story to someone else. The rule is simply pehle jo revenue 144 million mobile users se collect hota tha ab wo few millions ki g mai se nikala jaay ga
ji ji mashallah

FBR admits PKR 200Bn tax refunds pending
The FBR has admitted that around PKR 200Bn sales tax/income tax refund claims and customs duty drawback claims are pending with the tax department against PKR 250Bn claimed by exporters. FBR paid PKR 68Bn refunds in 10MFY18 as compared to PKR 53Bn in 10MFY17. It, however, has specified no date for clearing the entire payment in one go, but added that all claims would be cleared through the electronic system.
http://www.kcci.com.pk/research/index.php/2018/05/26/fbr-admits-pkr-200bn-tax-refunds-pending/
 

!eon

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Awam pehle hi tax nahi daiti, jo thora bohat revenue hai woh cheap justice apnay publicity stunt k liya khatam kar raha hai.
Awam pays more tax than anywhere else. These are indirect taxes, and taxes on same item again and again and again.
e.g. You pay tax when you get a mobile connection. You pay tax on every card for that connection and then you pay tax on every package in that card and then you pay tax on every call in that package, and same goes for any every day item or commodity.
These phone companies pay their due taxes out of your pocket and you don't know it.
In the end of all, your tax ends up in investment of some shadow company or in shadow foreign account.
 

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