SC restore taxes on mobile top-up

Islamabad, April 24, 2019: Supreme Court of Pakistan on Wednesday restored the tax on mobile phone cards.

The court also withdrawn the stay-order issued on June 16 to stop the deduction of some 24 percent taxes on mobile phone cards.

After the Court order, now people will not get Rs 100 on Rs 100 valued card and all taxes was being deducted before the stay-order will be deducted with immediate effect.

Government collect tax of 12.5 percent as withholding tax and 17 percent to 19.5 percent as Federal Excise Duty.

According to Muzammil Asalam an Economist restoration of tax card phones to help generate Rs 15 billion in two months.

He said that tax collection on card might help generate Rs 7.5 billion a month.

Before the apex court decision tax collection was around Rs 90 billion in July 2018 apex court halted tax collection on cellular phone cards, he added.

Overall tax collection of the government form cellular phone stood around Rs 147 billion, he mentioned.

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