Supreme Court on Monday suspended all the taxes on prepaid mobile cards.
Earlier in May, the CJP had taken a sou motu notice on high levy on mobile cards in the country, as he asked under which law Rs40 were being deducted from Rs100 mobile cards, according to local media reports.
In a sou motu case hearing, headed by three-member bench in Lahore registry of apex court, Justice Nisar has ordered all telecom operators to suspend all sorts of taxes and service charges on mobile cards from 12 am of June 13th.
The recent development means, that Rs 100 will be available in full for airtime when a Rs 100 card will be loaded by telecom users.
The court remarked on the matter;
“The public is being looted here. How can tax be received from a street vendor? Deduct tax from the person whose mobile phone usage is more than set limits.”
“How can tax be received from a person who does not come in the tax net? It is illegal to provide Rs64.38 to a person who charges Rs100 card in his phone. A comprehensive policy should be made over the tax deduction,” directed the court.
Prior to this order, consumers were paying almost 42% tax on balance cards which included 19.5 percent Federal Excise Duty (FED), 12.5 percent With Holding Tax (WHT) and 10 percent service/ maintenance charges.