Supreme Court Reinstates Taxes on Mobile Phone Cards – Digital Asia Tech

Supreme Court Reinstates Taxes on Mobile Phone Cards – Digital Asia Tech

By Prosyscom
In April 25, 2019

The Supreme Court of Pakistan has reinstated all the previous taxes on mobile cards, local media reports claim.

A three-member bench headed by Chief Justice Asif Saeed Khosa was hearing the case pertaining to taxes on mobile phone scratch cards. The bench also included Justice Azmat Saeed and Justice Qazi Faez Isa.

According to reports, the top court has withdrawn its previous stay order issued on June 12, 2018 – which ordered to abolish all taxes on mobile top-ups.

The latest development means that cellular consumers will not receive full balance for their recharges.

Earlier in June last year, former CJP, Justice Saqib Nisar, had issued a written order to all the mobile companies for the suspension of taxes on mobile cards and ordered to make necessary arrangements to remove all taxes until there’s a system which can differentiate between the taxpayers and those who don’t fall under the tax net.

Back then, the cellular companies were charging as much as Rs. 40 on Rs. 100 cards. Reports suggested that the amount included a 19.5 percent Federal Excise Duty (FED) along with 12.5 percent withholding tax and 10 percent service/maintenance charge on every card of Rs. 100.

During the course of hearing, which was attended by the Attorney Generals from all the provinces, it was agreed upon that the tax suspension had cost huge losses to the provinces in terms of revenue generation.

The apex court was informed that in the last 9 months, provinces have borne losses of Rs. 90 billion due to the tax abolition on mobile top-ups.

There was a debate in the courtroom on whether matters related to taxes could be heard under Article 184-3.

Chief Justice, Justice Azmat Saeed Khosa read out a quick verdict maintaining that the top court will refrain from interfering in matters related to taxation.