Cellular companies end administrative charges on mobile top-ups

ISLAMABAD: Good news for the mobile phone users as the cellular companies have decided not to charge administrative charges on mobile top-ups, ARY News reported on Monday.

The companies were charged 10 per cent administrative charges, earlier.

The step has been taken in the wake of the Supreme Court’s judgment barring the companies from charging administrative charges from the users.

The mobile phone subscribers will not get Rs89.9 instead of Rs76.94 on recharge of Rs100.

Now the mobile phone users will only have to pay 12.5 advance income tax on every top-up.

Earlier when 26% tax was imposed on mobile cards, cell phone users were receiving Rs76 on Rs100 recharge.

The Supreme Court had on April 24, 2019, announced the restoration of all taxes charged by cellular service providers on mobile phone top-up cards after the apex court had suspended the deduction of taxes on prepaid cards levied by mobile phone service providers in June, 2018.

A SC bench headed by then CJ Nisar had suspended the deduction of taxes imposed on the top-up of prepaid cards by cellphone service providers and the Federal Board of Revenue (FBR).

Former CJP Saqib Nisar had questioned how a person who doesn’t fall within tax net is made to pay taxes on mobile phone top-up. Tax should be levied from a person whose cell phone use exceeds the fixed limit, he added.