SC summons governments, mobile phone companies in tax on cards’ case

1130
SC

ISLAMABAD: Supreme Court (SC) of Pakistan on Tuesday declared receiving withholding and sales taxes on mobile phone cards from consumers illegal.
During today’s hearing a pertaining to taxes on mobile phone cards, Attorney General informed the courts 19.5% sales tax while 12.5% withholding tax was being taken on card’s recharge.
He added that mobile phone companies were also charging the consumers with 10% service charges.
Meanwhile, an official of the Federal Board of Revenue (FBR) informed the court that not the federal government but the provinces were receiving the sales tax on mobile phone cards.
Hearing this, Chief Justice of Pakistan (CJP), Justice Saqib Nisar asked as to under which law, withholding and service taxes were being taken from consumers.
He ordered the federal government, FBR, provinces and mobile phone companies to submit their responses to the court within one week.

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