SC Abolished Services Tax On Prepaid Mobile Cards And Finally People Can Take Sukh Ka Sans

Mobile service providers in Pakistan have begun the execution of an order of the Supreme Court to expel service or subsistence charges on prepaid mobile scratch cards or load, according to Khurram Mehran, spokesperson of Pakistan Telecommunication Authority (PTA).

Currently, Pakistan is going through the tough phase and the bourgeoisie class is struggling due to hefty amounts of taxes. Prime Minister, Imran Khan has vowed to take taxes from the people.

However, at this juncture of adversity, the relief in service charges of mobile service providers in Pakistan is a blessing.

Forthwith, the cell phone users in Pakistan will get about Rs. Rs88.9 balance in their cellphone account after adding Rs. 100. Earlier, a user used to get about Rs. 72 to Rs. 77 after a recharge of Rs. 100 PKR.

Khurram Mehran told that in an earlier recording this year, the supreme court had ordered mobile phone service providers in Pakistan that they could charge 12.5 percent withholding tax. Nevertheless, the court had directed them to remove the 10percent service charges.

Former CJP Saqib Nisar

In 2018, the former chief justice Saqib Nisar had taken a Suo Motu notice against the Mobile service providers in Pakistan. The public complaints inspired Chief justice to take notice of the high amount of tax or other charges. Click here for more viral news from Pakistan

Thereafter, Ex-chief justice, Saqib Nisar abolished the taxes. However, it was temporary. After the retirement of Chief justice Nisar, the apex court restored taxes owing massive loss to the exchequer.

Justice Nisar had questioned whether the reduction of Rs40 on a load of Rs100 was not taking advantage and noted that the matter is associated with the public interest.

In one of the hearings, the apex the court was informed that the country had undergone a loss of about Rs90 billion since the suspension of taxes.

In the month of April 2019, the Supreme court reinstated reduction of withholding tax and sales tax on pre-paid load by renouncing the earlier order.

The Supreme Court, yet, stated that the mobile service providers in Pakistan were not permitted to levy any service charges.

The order stated: "The order dated 11th June 2018 did not record reasons nor did it determine that the imposition of the taxes was without jurisdiction. We are also not persuaded to hold that the taxes were imposed without requisite legislation or that the six statutes contravened the Constitution."

The order declared the restoration of the taxes may, hence, be continued."However, the cellular telecom companies are not allowed to impose any service/maintenance charge; thereon as they have elected not to impose these charges," said the order.

Before the adjournment, withholding tax was 12.5% on a load of Rs100; following Section 236 of the Income Tax Ordinance of 2001. In comparison, Islamabad imposed a 17percent excise tax on the users in Islamabad.

The provinces were getting the 19.5pc sales tax on services from cell phone users. Moreover, Mobile service providers in Pakistan were charging 10 percent for their services.