Deduction of withholding tax on phone cards begins

ISLAMABAD: Federal Board of Revenue (FBR) has started collecting withholding tax on phone cards on Friday following the judgment of the Supreme Court of Pakistan (SCP).

The apex court a day earlier in its judgment said that it would not interfere the taxation matter. The superior court itself suspended the taxation on phone cards in June 2018 after taking suo moto notice.

The FBR started up to 12.50 percent withholding tax on prepaid card of mobile phones.

Besides, the provinces have also started collecting sales tax on services on mobile phones usage at 17 to 19.50 percent.

In the federal capital territory the FBR is collecting federal excise duty on mobile phones in sales tax mode.

However, the service charges of mobile phone companies were still undecided as the apex court had not issued any such orders.

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Withholding tax rate on telephone cards

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