ISLAMABAD: Supreme Court of Pakistan on Tuesday remarked that cellular companies are exploiting mobile phone users by imposing unnecessary taxes on every recharge, Aaj News reported.
On Tuesday, three-member bench, headed by Chief Justice Saqib Nisar, resumed the suo moto notice of deduction of taxes on mobile phone cards.
Chief Justice Saqib Nisar said, “How much ‘withholding taxes’ are taken for the mobile phone usage?” Responding to which Attorney General said, “Almost 12.7 per cent holding duty and 19.5 per cent sale taxes have been deducted on recharging a phone card and easy load, whereas 10 per cent of service charges are also taken from 100 rupee card.”
Justice Ijaz-ul-Hassan said, “Why the service charges have been taken?” On the answer of which, Attorney Journal said that it could only be answered by mobile phone companies.
Chief Justice urged to explain how the ‘with holding taxes’ has been taken?. He questioned, ‘How the ‘with holding takes’ are imposed on those who are not eligible to pay taxes? Financial Minister should be called and be asked about taking taxes daily from 14 crore mobile users.”
Attorney Journey said that ‘with holding taxes’ was not taken from government and embassies.
On the question of imposing undue sales taxes, FBR said ‘It is received by provincial government.”
Responding to which, Chief Justice said, ‘Which law allows province to take sales taxes? Is it not exploitation to impose double taxes?’
At the end, Supreme Court adjourned the case for two weeks.