FBR to audit WHT deduction on mobile phone cards

Mobile phone cards

The Federal Board of Revenue (FBR) announced to conduct a forensic audit of withholding tax being deduction by cellular operators on recharge of mobile phone cards.

A special meeting presided by Public Accounts Committee PAC Chairman Syed Khursheed Shah was held at Parliament House on Friday. In the convention, PAC expressed dissatisfaction over the process of receiving taxes and the utilization of amount collected through mobile phone cards.

The cellular companies have not been sharing correct information about revenue collection from subscribers, the PAC Chairman said.

Briefing the convention about the method of tax collection on mobile phone cards by cellular companies, Nisar Khan said the FBR was collecting 14 percent withholding taxes on mobile phone cards.

A customer gets Rs.75.87 on the recharge of Rs.100 card after the deduction of all taxes. The tax ratio on mobile cards is different in all provinces as in Islamabad the total deduction is more than 26 rupees on a card of worth Rs.100.

FBR collected a total of Rs.43.3114 billion withholding tax from cellular companies during the FY 2015. While Rs. 1.2614 billion had been received from telecoms as excise duty.

The Chairman PAC also highlighted the issue of night packages offered by the cellular operators and said these packages are negatively impacting our youth so should be banned. Pakistan Telecommunication Authority (PTA) Chairman Ismael Shah assured PAC to resolve the issue of on-net calls packages.

The spokespersons of National Database and Registration Authority (NADRA) confirmed PAC to provide required technical help for conducting the forensic audit of the cellular companies.

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