Earlier we informed our readers that Supreme Court of Pakistan has ordered to suspend all tax deductions by the cellular companies on mobile phone recharge. Cellular companies received written order from Supreme Court to end all kind of taxes on mobile cards. Thus the mobile companies have decided to offer full Rs 100 balance on Rs 100 card starting from today 13th June. From 12 am-midnight today mobile phone customers won’t be charged any tax on mobile loads.

Following the Supreme Court order, mobile customers will be given this relief for 15 days as FBR and mobile companies will find a solution to tax the customers who come in the tax net. Chances are that the suspension of tax on mobile phone load can be extended for 15 more days. Supreme court has asked that tax on telecom service should only be taken from those who come in the tax net bracket. It should be collected from those people who use the mobile phone beyond the limits. The apex court also ordered the formation of a comprehensive plan for deducting taxes on mobile phone recharge.

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The relevant stakeholders and telecom companies will determine which customers come in the tax net. Until then all taxes are suspended. It is pertinent to mention that voice calls, direct messages, mobile internet and other value-added services are exempted from all kinds of taxes.

Earlier in January, we informed our readers that FBR found some inconsistencies in the taxes cut by cellular companies. FBR claims that mobile services are deducting extra taxes from consumers and transferring less to the government. Let us hope that now issues relating tax deduction by cellular companies will be resolved.