Supreme Court suspends tax deduction on mobile pre-paid scratch cards

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LAHORE (Pakistan Observer-Exclusive): The Supreme Court ordered a suspension in tax deduction on mobile pre-paid scratch cards on Monday.

Hearing a Suo-Motu case regarding an huge increase in taxes over pre-paid cards. Chief Justice of Pakistan Justice Mian Saqib Nisar ordered the suspension at Supreme Court Lahore Registry.

The CJP gave phone companies and authorities two days in order to implement court orders.

“Taxes should be taken from users whose mobile phone usage is above the set limit,” CJP Justice Nisar said during the hearing.

CJP also directed authorities to draft a comprehensive policy regarding deduction of taxes on mobile phone usage.

“Service providers and Federal Bureau of Revenue (FBR) charge taxes on pre-paid scratch cards and are looting people and It is illegal that Rs 64.38 are charged as taxes on a Rs 100 pre-paid scratch card.” the bench remarked.

“How are taxes being charged from those who do not fall in the tax network?”  the bench asked the FBR chairman.

Earlier month, the CJP had ordered federal and provincial governments and the FBR to answer that why so many taxes were being charged on pre-paid scratch cards.

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