No tax deduction

No tax deduction on mobile phone balance recharge till next order Supreme Court

Chief justice Main Saqib Nisar order’s about the review for tax deduction case on mobile balance recharge which was court orders not to deduct from balance recharge . CJP Saqib Nisar order ‘slast month on hearing about tax deduction on mobile phone on 11 June 2018. CJP stated this while hearing a separate case regarding increasing prices of petroleum products. Source The News

CJP Nisar declared, “The decision to suspend tax collection on mobile cards will hold until then.

Earlier, the consumers were paying 42 percent tax, including 19.5 percent FED, 12.5 percent WHT and 10 percent service/ maintenance charges on every Rs.100 card.

As Following the orders of the Supreme Court, FBR official had announced to not charge any tax on top-ups for a period of 15 days.On June 11, the apex court suspended all taxes deducted by cellular companies and Federal Board of Revenue (FBR) on mobile phone recharge while hearing a suo motu case at Lahore Registry.

In last month May, CJP had taken notice of heavy taxes on mobile recharge. The CJP had ordered for the removal of any type of tax.Previously, it was said that the tax was removed for only 15 days, however, the CJP today  7 july 2018 rejected the notion.

Today  Amid the FBR-given 15-day period has expired, the chief justice remarked that decision to suspend tax deduction was not for a limited time period, adding that the orders will continue until further orders.On this issue CJP took the notice on May 3 and had issued notices to the federal government and cellular companies, asking “under which head an amount of Rs40 is being charged on every Rs100 recharge.”