ISLAMABAD: Supreme Court (SC) has sought reply from provinces for imposition of sales tax on mobile phone cards besides summoning reply from FBR for levying tax and from mobile companies for charging service charges on mobile phone cards. .
Chief Justice of Pakistan (CJP) Mian Saqib Nisar has remarked “ why withholding tax has been levied on a person who are not eligible to pay tax. Is slapping double tax not exploitation.
Justice Ijazul Ahsan has remarked “ slapping double tax on mobile phone cards is illegal.
A 3-member bench of SC presided over by CJP MIan Saqib Nisar took up for hearing suo motu notice of charging of high taxes on mobile phone card on Tuesday.
CJP inquired “ how is withholding tax being charged on use of mobile phone.
Attorney General (AG) told the court that 12.7 percent withholding duty and 19.5 percent sales tax is charged on mobile phone cards and easy load while 10 percent service charges is levied on mobile card worth Rs 100.
Justice Ijazul Ahsan inquired “ why the service charges are collected.
AG said mobile companies can give reply on this count.
CJP inquired “ please explain about withholding tax.
AG said withholding tax is not collected from government and diplomats.
CJP Inquired “ why sales tax was slapped on mobile cards.
FBR officer told the court provinces are charging sales tax.
CJP inquired under what law provinces are charging withholding tax. Is charging double tax not exploitation. Why withholding tax was levied on the person who are not entitled to pay tax. How withholding tax is being charged to 140 million people.
Justice Ijazul Ahsan remarked “ service charges is also a sort of tax.
SC sought reply from provinces for imposing sales tax, from mobile phone companies for slapping service charges. Reply was also summoned from FBR for imposition of tax
The court adjourned the hearing for two weeks regarding suo motu notice of the high levy charged on mobile phone cards in the country.