Telecom companies started deduction of restored federal/provincial taxes including withholding tax on mobile phone top-up cards from Friday. Customers of cellular companies received messages on Thursday that stated, "Dear customer, in view of the order of the Supreme Court of Pakistan, all federal and provincial taxes, levies or charges shall be applicable on usage of telecom services."

A message sent by another cellular company to customers said that in accordance with the Supreme Court order, 12.5 percent Advance Tax and 19.5 percent FED will be conducted on recharge, while there will be 10 percent admin fee.

Sources said that the FBR has informed the mobile operators to start deducting the advance withholding tax from subscribers in line with the order of the Supreme Court, they added.

On the charge of Rs 100 easy load or scratch card, 40% of the amount is deducted, which includes withholding income tax, sales tax and company services charges. The person who loads the card had to pay 40%. Since the suspension of the taxes the consumers on Rs 100 charge used to get Rs 100 balance. On April 24, the Supreme Court announced restoration all the taxes charged by cellular service providers on mobile phone top-up cards.

Copyright Business Recorder, 2019