ISLAMABAD: Following the order of Supreme Court, cellular companies have decided to suspend all taxes on mobile phone recharge through pre-paid scratch cards.
According to media reports, all cellular users will be credited with 100 per cent amount on mobile recharge from tonight (12am PST) for the 15 days only.
The Federal Board of Revenue (FBR) in collaboration with local cellular firms, within 15 days, will establish a new mechanism regarding tax deduction on mobile phone recharge.
The current tax levy on every Rs100 recharge is Rs35.72.
Earlier this week, the apex court had suspended all the taxes deducted by the cellular companies on mobile phone recharge and gave a two-day deadline to the companies for implementing the order
A two-member bench, headed by Chief Justice Mian Saqib Nisar, issued the ruling while hearing a suo moto notice the withholding tax imposed on mobile recharge at apex court’s Lahore Registry.
The court also ordered to form a comprehensive plan for deducting taxes on mobile cards, adding that the taxes – withholding tax, federal excise duty and others – will not be deducted until the final verdict in the case is announced.
Earlier, Senator Muhammad Ateeq Shiekh during the meeting said, consumers have paid Rs28 on Rs100 card which is unfair. The government should remove advance and withholding tax being charged on Rs100 mobile card, he demanded.