The Federal Board of Revenue (FBR), in a reply submitted before the Supreme Court Saturday said that tax ratio imposed on mobile bills consumers in Pakistan is less than other Asian countries including Bangladesh, Malaysia, Thailand and Indonesia. The FBR further added that federal excise duty has been reduced to 17pc.
The reply further states that almost Rs4.5bn are collected in terms of withholding tax every month. In financial year 2016-17 alone, Rs51bn had been deposited in the national exchequer in terms of withholding tax. The FBR further informed the apex court that nearly Rs944bn are collected in terms of withholding tax whereas the same constitutes 70pc of direct tax collections. Advance withholding tax is submitted in the account of mobile consumer. Chief Justice of Pakistan (CJP) Mian Saqib Nisar had taken suo motu notice of high levy being charged on mobile phone cards in the country. The Chief Justice remarked that Rs 40 was being cut on Rs 100 card. He asked under what heads the levy was being charged.
The apex court would hear the case next week. Currently, the consumers are paying 42 percent tax, including 19.5 percent FED, 12.5 percent WHT and 10 percent service/maintenance charges on every Rs 100 card. A mobile user, who recharges Rs 100 card, is paying Rs 35.62 in taxes. Further, the user is paying full amount even if the call drops after 10 seconds.
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