Says the orders to suspend the taxes on mobile phone cards were not only for ten days
Islamabad (Pakistan Point News – 5th July, 2018) Chief Justice of Pakistan (CJP) Mian Saqib Nisar has said that he had not suspended the taxes on mobile phone cards for ten days.
He added that the suspension of taxes on mobile card recharge will continue till further orders.
A hearing on the suo motu notice over petroleum prices was held in the Supreme Court on Thursday.
The CJP expressed concern over the increase in petroleum prices. Demanding a report in this regard, the CJP adjourned the hearing till Sunday.
The Supreme Court had on June 11 suspended recovery of withholding tax, excise duty and service charges on mobile-phone recharge.
On the charge of a Rs100 prepaid mobile card, a 19.5% federal excise duty was charged along with 12.5% withholding tax and 10% service/maintenance charge.
The three-member bench, headed by Chief Justice Mian Saqib Nisar, passed the orders while hearing suo motu notice over deduction of high tax/other charges by mobile companies in Pakistan.
During the proceedings, Chairman Federal board of Revenue (FBR) Tariq Pasha appeared before the bench and submitted that recovery of service charges on mobile calls was personal act of the companies.
He further submitted that 130 million people use mobile phones across the country whereas only five per cent people pay taxes.
At this, the chief justice observed that ordinary cell phone users were being looted due to taxation measures in place. How tax could be recovered from persons who did not fall under the tax net, he questioned.
To which, the FBR chairman submitted that there was no system to identify taxpayers and non-taxpayers.
The chief justice remarked that a pushcart vendor uses mobile phone nowadays. How he falls under the tax net, he asked.
The chief justice further remarked that non-differentiation of taxpayer and non-taxpayer was a discriminatory behaviour and a policy based on discrimination could be set aside, under the Constitution.
