We all know the Supreme Court took note suo motu and ordered the suspension in deduction of taxes on prepaid mobile phone cards in June 2018. This measure was taken under the supervision of the former CJP Justice (ret’d) Saqib Nisar. However, the bad news is that now the SC has reinstated all taxes. Prepaid users will need to prepare them to pay taxes again.
Taxes on prepaid mobile phone cards restored by SC
We have learned that a three-member bench of the Supreme Court headed by Chief Justice of Pakistan (CJP) Asif Saeed Khan Khosa recently heard the case regarding the taxes on cell phone scratch cards. The bench included former Chief Justice of Pakistan Mian Saqib Nisar, Judge Ijazul Ahsan and Judge Umar Ata Bandial. They discussed the issue of reinstating taxes on mobile phone cards.
According to the latest reports, Rs25 will be deducted from each Rs100 card due to the reinstatement of scratch card taxes from now on. For example, the SC has now allowed mobile phone service providers to deduct prepaid card top-up taxes, months after preventing them from benefiting from the tax deduction. This is bad news for all users of prepaid services, but we can just hope that the government will take such a step for the betterment of the Pakistani economy.