Tax on mobile’s top up will be suspended till further order: SC clarifies

ISLAMABAD, Jul 05 (APP):Chief Justice of Pakistan Mian Saqib Nisar on Thursday made it clear that the tax deduction on mobile phone cards top-up will be suspended till further order.
Chief Justice passed these remarks while chairing a three-member bench which was hearing a suo moto notice regarding hike in price of petroleum products.
During course of proceedings, the chief justice said that the court did not suspend tax deduction on top-up for a specific time period. however it would be suspended till further orders of the top court, he added.
Supreme Court of Pakistan earlier on June 11 had suspended all taxes deducted by cellular companies on mobile phone recharge while hearing the case at Lahore registry.
The court also ordered the respondents to form a comprehensive plan for deducting taxes on mobile cards, adding that the taxes including withholding tax, federal excise duty and others will not be deducted.
The consumers were paying 42 percent tax, including 19.5 percent Federal Excise Duty, 12.5 percent withholding tax and 10 percent service/maintenance charges on every Rs100 card.
On the other hand in the main case regarding price hike in petroleum products Supreme Court expressed its concern and directed the authorities to submit explanation.
During the proceedings, the chief justice said, “Instead of giving relief to the people, you are making it hard for them to survive.” He commented that time to time tax implementation was a burden on underprivileged people.
The process of import of petroleum products seemed suspicious, he added.
He had also directed to take assistance from unbiased experts in that regard.