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Top court suspends 'exorbitant' tax on prepaid mobile bills

Dubious

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Top court suspends 'exorbitant' tax on prepaid mobile bills
By Muhammad Haroon
Published: June 11, 2018


Representational image of a man using mobile phone. PHOTO: REUTERS

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.”

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.

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.


https://tribune.com.pk/story/1732645/1-top-court-suspends-exorbitant-tax-prepaid-mobile-bills/

This "illegal" collection of mobile tax had been going on for a while now...So if it is illegal...where did the money go to?
 

HAIDER

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Top court suspends 'exorbitant' tax on prepaid mobile bills
By Muhammad Haroon
Published: June 11, 2018


Representational image of a man using mobile phone. PHOTO: REUTERS

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.”

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.

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.


https://tribune.com.pk/story/1732645/1-top-court-suspends-exorbitant-tax-prepaid-mobile-bills/

This "illegal" collection of mobile tax had been going on for a while now...So if it is illegal...where did the money go to?
according to FBR.... quami khazana maa
 

Dubious

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Taxes collected on prepaid mobile phone cards suspended for 15 days



Photo; File


KARACHI: Tax authorities have suspended all taxes collected on prepaid scratch cards following the directives of Supreme Court.

Following the suspension, no tax would be cut when a prepaid scratch card is recharged from midnight on Thursday and consumers will get 100 per cent credit for the next 15 days.

The apex court has directed the Federal Board Revenue (FBR) to present a report on the revenue impact of the suspension in tax collection after the 15-day period.

Due to the suspension of taxes on prepaid mobile phone cards, cellular service providers will not get Rs1.45 billion under the service charges.

On the other hand, FBR will lose out on getting Rs2 billion while provinces will not receive Rs2.91 billion in sales taxes during the 15-day suspension.

Sources in FBR said Rs120 billion in taxes are collected from prepaid card upload in mobile phones. Out of the amount, FBR gets 12.5 percent of the share while each province gets 19.5 percent in terms of sales tax.

On Monday, the Supreme Court had ordered a suspension in deduction of taxes on prepaid scratch cards.

Chief Justice of Pakistan Justice Saqib Nisar had ordered the suspension while heading a three-judge bench hearing a suo motu case regarding an increase in taxes on prepaid 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 had remarked during the hearing.

He had further directed authorities to draft a comprehensive policy regarding deduction of taxes on mobile phone usage.

Previously, customers would receive Rs64.28 on the recharge of Rs100 prepaid card, after deduction of federal excise duty, income tax and sales tax.

According to sources, cellular services providers would receive Rs35 billion annually by charge 10% taxes on every prepaid card upload in mobile phones.

https://www.geo.tv/latest/199258-taxes-collected-on-pre-paid-mobile-phone-cards-suspended
 

AZADPAKISTAN2009

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30% Tax is ok

100 ruppee , 30 rupee tax makes sense on country which has problem with Income tax payment

But the key here is the tax collected is reaching government if it is redirected to UAE and out of country then this is a major issue
 

AyanRay

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Isn't it too much on the part of the SC? A SC should stay away from policy decisions and comment only if it finds things to be unlawful. What's good and what's bad is not for the SC to decide. The Parliament enacts the law, judiciary just has to see if that's being followed.
 

DESERT FIGHTER

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Isn't it too much on the part of the SC? A SC should stay away from policy decisions and comment only if it finds things to be unlawful. What's good and what's bad is not for the SC to decide. The Parliament enacts the law, judiciary just has to see if that's being followed.
Is that your fukin problem?

Be concerned about your domestic politics/current affairs instead of sticking your nose in ours.
 

Mugen

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None of this matter unless the core issue of corruption is dealt with first, and the SCP is doing jack sh*t about that.
 

Dubious

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Isn't it too much on the part of the SC? A SC should stay away from policy decisions and comment only if it finds things to be unlawful. What's good and what's bad is not for the SC to decide. The Parliament enacts the law, judiciary just has to see if that's being followed.
What if the parliament isnt doing its duty?

SC did consider the tax illegal!
 

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