Supreme Court has just suspended the additional services tax on postpaid cellular service. The apex court issued order while hearing the case regarding unacceptable taxes imposed on citizens by the government and telecom sector.
Federal Board of Revenue (FBR) told the court that they are not taking any services tax when postpaid subscribers credit their balance. “Whoever is taking this tax, it is abolished now”, remarked Supreme Court.
Earlier, the court had removed the services tax on prepaid subscribers after taking a suo moto notice and directed the FBR and the cellular companies to come up with a decent amount of tax.
The advocate general Punjab informed the court that the government is bearing huge revenue losses due to the suspension of tax on cellular subscribers, on which the court responded, “If its a revenue loss, let it be as it was injustice and burden on the poor citizens of Pakistan.”
The court ruled out the provincial government’s verdict by saying that province is not providing any services to the telecom users, therefore, they are are not liable to receive any service tax.
Federal and provincial governments are provided with a six months timeline, in which they are going to devise a feasible strategy regarding the taxes on mobile phone users.