Administrative charges abolished on mobile top-ups

Following the Supreme Court's orders, mobile network operators in Pakistan will no longer be charging administrative charges on mobile top-ups.

The cellular companies have now stopped charging 10 per cent service/maintenance charges on every Rs100 recharge. Users will now only have to pay 12.5 per cent advance income tax on every balance recharge. This means the mobile phone users will get around Rs88 balance in their mobile account after recharging an Rs100 card.

Prior to this withdrawal of the charges, users got around Rs72 to Rs77 balance in their account. All the mobile network operators in Pakistan including Ufone, Jazz, Telenor, and Zong have officially started applying the new tax rate on mobile top-ups, local media reported.

Earlier in April, the SC directed to restore all taxes charged by cellular service providers on mobile phone top-up cards. Last year, the then Chief Justice of Pakistan Saqib Nisar ordered to suspend the deduction of taxes imposed on mobile top-ups.