The Supreme Court of Pakistan has ordered to suspend all tax deductions by the cellular companies on mobile phone recharge, according to the reports by local media.
A Chief Justice headed two-member bench announced the verdict during the hearing of a suo motu notice taken earlier by Chief Justice Saqib Nisar regarding withholding tax imposed on mobile phone recharge.
The top court ordered mobile companies to implement the orders within two days. It has also been observed that the tax should be collected from those people who used the mobile phone beyond the limits. The apex court also ordered the formation of a comprehensive plan for deducting taxes on mobile phone recharge.
The Chief Justice of Pakistan took notice on May 3 and had issued notices to the federal government and all cellular companies, and asked them to submit reply on “under which law an amount of Rs40 is being charged on every Rs100 recharge.”
After the verdict, the court gives a two-day deadline to all cellular companies to implement the order.