Notices Issued to Pakistan Telecom Companies

We all have mobile phones and one day or another, while loading our cell phones for a 100 Rs and then seeing only 60 Rs being added, have probably wondered, why such a huge tax rate. Pakistani mobile network providers take about 40% tax from the total amount. Most of Pakistan’s population is poor and cannot afford such high taxes. It is oppression in all its might.

The Chief Justice of Pakistan, Mr. Saqib Nisar has taken suo moto notice of this issue. He issued a statement to all private network companies, asking under which law they are deducting 42% taxes.

Under which head, an amount of Rs. 40 is being charged on every Rs. 100 recharge.

The Chief Justice has shown a grave concern over this issue as it is one of the causes of economic instability in the country. The 42% tax being applied to the people is a combination of three taxes, 19.5% Federal Excise Duty, 12.5% With Holding Tax, 10% Service or Maintenance charges. The Chief Justice also issued a notice to the Attorney General of Pakistan in order to look into this issue and explain what is causing such huge taxes.

This may be a sign that these heavy taxes will be limited, at least for people using under Rs. 500 per month. The representatives of the mobile network companies attended a hearing on Tuesday, 5th of May, 2018 at the Supreme Court of Pakistan.

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