REVEALED: Mobile top-up amount for non-filers

ISLAMABAD: The Federal Board of Revenue (FBR) has decided to impose an additional 87.5 percent withholding tax on non-tax filers phone users on mobile top-up, ARY News reported.

According to the details, the non-filers would have to pay a 90 percent withholding tax on mobile top-ups till they file their income tax returns. According to a proposal, if a non-filer user loads a balance of Rs 100, he would receive only Rs 10 as Rs 90 will be deducted as tax.

If mobile phone companies block SIM cards for non-payment of income tax, and the user buys another SIM, he would still also be charged 90 percent of tax. The non-filers will be charged additional taxes on every top-up and bundles.

The FBR shared lists of over 500,000 d non-filers with the Pakistan Telecommunication Authority (PTA) and cellular companies, asking them to block SIM cards. However, the PTA and cellular companies turned down the FBR’s request.

Earlier in the day, the Islamabad High Court (IHC) barred the federal government from blocking the SIMs of non-filers.

IHC Chief Justice Aamir Farooq issued the order in response to a writ petition filed by the telecom operator.

The court also issued notice to the federal government in this regard, with the next hearing on the matter scheduled for May 27, 2024.

The petition challenged Clause 114-B of the Income Tax Ordinance and the Federal Board of Revenue’s (FBR) Income Tax General Orders against non-filers.

The petitioner argued that the tax regulator’s new-found authority violated the fundamental right to freedom of business under Article 18 of the Constitution.

The petitioner warned that if implemented, this law would allow the government to deprive citizens of services in other business areas as well.