SC extends suspension of 'exorbitant' tax on prepaid mobile phone bills

Apex court had suspended tax for a period of 10 days on June 11

The Supreme Court (SC) on Thursday extended the suspension period of the 'exorbitant' tax collected on prepaid mobile cards till further notice, reported Express News.

During the hearing of a suo motu case of tax imposed prepaid calling cards, a three-member bench headed by Chief Justice Mian Saqib Nisar directed the government to suspend tax on mobile cards until further notice.



Taking notice of the excessive tax deductions on prepaid cards, the apex court had sought replies from telecommunication companies and the attorney general of Pakistan. In a subsequent hearing, the bench demanded a clarification on whether withholding taxes were being collected as per law.

“The law for withholding taxes appears to be imperfect,” the top judge had remarked. “Withholding taxes cannot be levied on a labourer who earns Rs100 a day. How can we collect withholding taxes from daily wage earners?” he added.

On June 11, the apex court had suspended tax for a period of 10 days.

After taking notice of deductions on prepaid mobile phone cards, the SC in May had sought replies from all telecommunication companies and the attorney general of Pakistan.