ISLAMABAD: Federal Board of Revenue (FBR) and cellular companies beginning Thursday won’t be charging any tax or charges on top-up of prepaid mobile phone cards for a duration of 15 days.
An FBR official disclosed beginning 12 am on Thursday, all mobile users will receive 100 percent balance on credit top-up of any amount, reported a private media outlet.
The Supreme Court on Monday barred the FBR and cellular companies from deducting withholding tax and other charges on prepaid cards.
The apex court gave the cellular companies and FBR two days to execute the order.
A three-member of the apex court headed by Chief Justice Mian Saqib Nisar in its hearing had noted that subtraction of such taxes equated to a mandatory appropriation.
CJ Nisar regretted mobile telecom companies were swindling innocent consumers with dispensation.
As per the SC directive, this relief will last for 15 days after which the FBR and cellular companies would submit a mechanism to the apex court for collecting taxes via mobile phone top-up cards.
Jazz, Telenor, Zong and Ufone announced on their respective websites that starting 14th June every balance recharge would result in a complete transfer of balance to prepaid users accounts and there will be no tax deduction on it.
Also, the SC had told the cellular companies and FBR to submit a plan within next two weeks for bifurcating those mobile phone users who weren’t liable for paying taxes from their tax collection system.