The CJP suggests the reinstatement of the tax on prepaid mobile phone cards


LONDON: Pakistan Chief Justice (CJP) Mian Saqib Nisar on Sunday suggested a new levy of the prepaid mobile phone card reloading tax in order to accumulate funds for the creation of the Mohmand and Diamer-Bhasha dams.

Addressing a fundraising ceremony for a dam in London hosted by the UK and Pakistan Chamber of Commerce and Industry on Sunday, Mr Nisar said: “It will not be appropriate to impose taxes to raise funds for the construction of dams, however, we had previously suspended the withholding tax on the reloading of prepaid cards by mobile phone service providers and learned that thanks to this, 3 billion rupees was saved per month.

He added: “If the nation allows it, we will re-impose the prepaid card top-up tax and collect money for the dam fund,” he reports. Geo News.

In June, the Supreme Court ordered mobile phone companies and the tax authorities to collect various taxes from customers for recharging credit in prepaid phones.

The Supreme Court’s decision to suspend taxes on mobile phone cards is said to have cost the treasury a loss of revenue of Rs 123 billion at the federal and provincial levels.

Of this, a loss of revenue of Rs 75 billion would be borne by the provincial government and Rs 48 billion by the Federal Board of Revenue (FBR).

The tax regulator will record a loss of revenue of Rs 4 billion per month with the current rate of 12.5% ​​tax deducted on a prepaid phone card, which equates to an annual loss of Rs 48 billion.

Before the Supreme Court’s ruling, provinces collected around 19.5 percent tax on a prepaid calling card, so their lost revenue would hit Rs 75 billion a year.

In the event that this tax remains suspended in its entirety for the next fiscal year 2018-19, the aggregate cumulative revenue losses across Pakistan would drop to 123 billion rupees.


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