SC releases written verdict on taxes levied on mobile services


ISLAMABAD (DNA) – The Supreme Court of Pakistan (SCP) on Tuesday released its written verdict in a case pertaining to taxes charged by cellular service providers.On March 27, a two member-bench of the apex court comprising Justice Qazi Faez Isa and Justice Ijazul Ahsan presided over hearing and reserved the verdict.According to the verdict, the federal and provincial governments were directed to submit details of the tax collected on phone calls in the previous year.

Moreover, the apex court raised questions regarding Section 184/3 being implemented on the matter, and remarked that tax collection on phone calls does not fall under this article.

“Is it possible to charge federal excise duty (FED) on the services being provided by the companies”, the verdict reads.
“Can the tax be collected in advance from the taxpayers,” the verdict further mentions.

The verdict also mentions that according to the Attorney General, the matter of mobile tax does not fall under the scope of public interest, and advocate generals of Punjab, Sindh and Balochistan also agree to his stance.

he court has recommended Chief Justice of Pakistan Justice Asif Saeed Khosa to constitute a three member bench of the Supreme Court to look into the matter.

In June, 2018, the Supreme Court had suspended the deduction of taxes imposed on the top-up of prepaid cards by cell phone service providers and the Federal Board of Revenue (FBR).

A three-judge bench comprising of the then chief justice of Pakistan Mian Saqib Nisar, Justice Ijazul Ahsan and Justice Umar Ata Bandial, had heard the case at the apex court’s Lahore registry.