Chief Justice Suspends All Taxes, Services Charges on Mobile Cards

staticPointer

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Dec 7, 2012
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The Supreme Court (SC) on Monday suspended the deduction of taxes imposed on the top-up of prepaid cards by cellphone service providers and the Federal Board of Revenue (FBR), giving both institutions two days to act on the orders.
A three-judge bench comprising Chief Justice of Pakistan Mian Saqib Nisar, Justice Ijazul Ahsan and Justice Umar Ata Bandial, was hearing the case at the SC Lahore registry.
The court, when it was told earlier that for every cellular charge, 5.5 per cent was deducted as a withholding tax, 19pc as sales tax and another 10pc as services charges, had described the deductions as exploitative and illegal.
The court observed today that ordinary cellphone users were "being looted" due to the taxation measures in place on prepaid cards.
"How can you ask a pushcart vendor to pay taxes?" Justice Ahsan asked. "If someone doesn't fall into the tax net, how can taxes be imposed on them?"
"It is unlawful that on a Rs100 prepaid card, only Rs64.38 is acquired," Justice Ahsan said.
The chief justice said that only people whose cellphone usage crosses certain limits should be taxed.
The top judge said that a comprehensive policy should be formulated on taxes imposed on prepaid cellphone cards.
Breakdown of deductions made to 100-rupee calling card

The FBR,via an illustration, had earlier explained to the SC that every time a consumer loads a Rs100 mobile card, 12.5pc of the total amount gets deducted as adjustable withholding tax, while 10pc of the whole goes to the telecom company as service charges.
With the telecom company taking its cut, the 19.5pc sales tax also kicks in. However, it is applied only to the telecom company's 10pc rather than the entire Rs100 card.
At this point, the consumer is left with Rs76.94 — of which the government charges 19.5pc sales tax (Rs 15) to the consumer for making calls and sending SMS.
In the end, as per the FBR calculation, the net amount left with the consumer for his actual consumption on a Rs100 charge is Rs61.93.

More : dawn

Propakistani

 

serialklr

Intermediate
Jan 20, 2011
214
0
21
Karachi
The Supreme Court (SC) on Monday suspended the deduction of taxes imposed on the top-up of prepaid cards by cellphone service providers and the Federal Board of Revenue (FBR), giving both institutions two days to act on the orders.
A three-judge bench comprising Chief Justice of Pakistan Mian Saqib Nisar, Justice Ijazul Ahsan and Justice Umar Ata Bandial, was hearing the case at the SC Lahore registry.
The court, when it was told earlier that for every cellular charge, 5.5 per cent was deducted as a withholding tax, 19pc as sales tax and another 10pc as services charges, had described the deductions as exploitative and illegal.
The court observed today that ordinary cellphone users were "being looted" due to the taxation measures in place on prepaid cards.
"How can you ask a pushcart vendor to pay taxes?" Justice Ahsan asked. "If someone doesn't fall into the tax net, how can taxes be imposed on them?"
"It is unlawful that on a Rs100 prepaid card, only Rs64.38 is acquired," Justice Ahsan said.
The chief justice said that only people whose cellphone usage crosses certain limits should be taxed.
The top judge said that a comprehensive policy should be formulated on taxes imposed on prepaid cellphone cards.
Breakdown of deductions made to 100-rupee calling card

The FBR,via an illustration, had earlier explained to the SC that every time a consumer loads a Rs100 mobile card, 12.5pc of the total amount gets deducted as adjustable withholding tax, while 10pc of the whole goes to the telecom company as service charges.
With the telecom company taking its cut, the 19.5pc sales tax also kicks in. However, it is applied only to the telecom company's 10pc rather than the entire Rs100 card.
At this point, the consumer is left with Rs76.94 — of which the government charges 19.5pc sales tax (Rs 15) to the consumer for making calls and sending SMS.
In the end, as per the FBR calculation, the net amount left with the consumer for his actual consumption on a Rs100 charge is Rs61.93.

More : dawn

Propakistani

Let's wait and see what happens. As of now this sounds too good to be true.

If Supreme Court's decision is implemented and the taxes are declared "illegal" then the mobile network companies will have to reimburse their customers all the amount they have collected over time under the name of these taxes because they were collected "illegally".

But we all know that this is Pakistan where the interests of the few outweigh the interests of many and decisions are ruled in favor of the elite.

Indeed justice is Blind!

Sent from my HUAWEI VNS-L21 using Tapatalk
 

azaabkhan

Beginner
Feb 16, 2016
35
0
0
This is Pakistan my friend,

Telcos will increase charges on call rates and packages to cover up their losses.

And as the guy above said, Telecom companies/FBR should reimburse the tax they have illegally collected from the consumers.
 

Soka

Active member
Jul 18, 2017
260
0
0
This is Pakistan my friend,

Telcos will increase charges on call rates and packages to cover up their losses.

And as the guy above said, Telecom companies/FBR should reimburse the tax they have illegally collected from the consumers.
petrol price increase per bhi koi irshad farmaye
 

staticPointer

PG LEGENDARY
Dec 7, 2012
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www.pakgamers.com
Confirmed: Mobile Customers to Get 100 out of 100 on Mobile Loads From Today

Mobile phone companies have received the written order from Supreme Court of Pakistan for suspension of taxes on mobile cards as they are now preparing to make the necessary arrangements to offer Rs. 100 load on a Rs. 100 Card.


According to sources in industry, a written order from Supreme Court was received that confirms that mobile phone customers won’t be charged any taxes or service charges on mobile loads.

This essentially means that customers will get Rs. 100 as a whole on a Rs. 100 card, starting midnight today (12AM – June 13th, 2018).

According to Supreme Court order, customers will get this initial relief for 15 days only as FBR, mobile phone companies and other stake holders are going to determine on how to tax customers who come with-in the tax net.

Another order — for suspension of taxes on telecom services — could be issued to extend the limit for another term of 15 days
.


More: Confirmed
 

hinabutt

New member
Jun 2, 2018
5
0
0
www.chillprogram.com
This is Pakistan my friend,

Telcos will increase charges on call rates and packages to cover up their losses.

And as the guy above said, Telecom companies/FBR should reimburse the tax they have illegally collected from the consumers.
This is debatable.. It's still a great news for temporary scenario. :D
 

serialklr

Intermediate
Jan 20, 2011
214
0
21
Karachi
A colleague of mine informed me today that he loaded Rs 100 and got all of it as balance and no taxes were charged.

I say take advantage while it lasts!
Amma abba sab ko 100 ka load Kara do :)

Sent from my HUAWEI VNS-L21 using Tapatalk
 

Benighted

Night is the new day
May 28, 2009
2,476
2
44
31
Tartarus
Lol. Telecom companies have responded to this by increasing rates of all subscription plans, so awaam is still getting f**** in the ass.
 

Captain Wajji

Well-known member
May 30, 2012
1,407
2
44
30
Pindi Boy.
This is Pakistan my friend,

Telcos will increase charges on call rates and packages to cover up their losses.

And as the guy above said, Telecom companies/FBR should reimburse the tax they have illegally collected from the consumers.
They already have. 100 wala package 120 ka :D

- - - Updated - - -

Lol. Telecom companies have responded to this by increasing rates of all subscription plans, so awaam is still getting f**** in the ass.
Exactly. My point.
 

Soka

Active member
Jul 18, 2017
260
0
0
Today recharged 250 rs .got 250 rs . So it’s not only on 100 rs. But higher also
 

staticPointer

PG LEGENDARY
Dec 7, 2012
3,266
0
41
افغانستان
www.pakgamers.com
Taxes on Mobile Cards are Not Coming Back (For Now)

This tax suspension was supposed to remain in place for 15 days but now we are getting reports that taxes on mobile phones will remain suspended for another few days until a new order is passed by the Supreme Court of Pakistan.

According to confirmation, taxes on mobile card loads will remain suspended till the next order, a hearing for which is scheduled during the next week.

Not to mention, it is very likely that some taxes will remian suspended after the next decision — but nothing can be said with certainty as of yet.


More: Taxes on Mobile Cards
 
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