Supreme Court restores tax collection on prepaid cellular cards

April 24, 2019 (MLN): The Supreme Court of Pakistan has restored tax collection on mobile cards, saying that the apex court will not interfere in this matter.

Earlier in June 2018, the apex court had halted tax collection on cellular phone cards. Back then the tax collection from prepaid services was around Rs.90 billion whereas overall tax collection from telecom companies stood at Rs.147 billion.

Following SC’s latest decision, all the previously withheld taxes are now ordered to be restored.

This implies that all the cell phone holders will now have to pay tax on prepaid cards or services

This measure is expected to generate around Rs.15 billion in two months as the government collects tax of 12.5% as withholding tax and 17% to 19.5% as FED

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