SC issues written verdict of tax collection on calls by cellular companies

ISLAMABAD: The Supreme Court of Pakistan on Tuesday released its written verdict related to excessive tax collection on calls being charged by the cellular companies.

The verdict has been written by a two member-bench of the apex court comprising Justice Qazi Faez Isa and Justice Ijazul Ahsan.

According to the verdict, the federal and provincial governments were asked to submit details of the tax collected on the cellular calls during last year.

The honourable court has also raised questions regarding section 184-3 into the matter and said in its verdict that the matter of collecting tax on cellular calls does not fall under this article.

“Is it possible to charge FED on the services being provided by the companies”, the verdict read.

The court has recommended Chief Justice of Pakistan Justice Asif Saeed Khosa to constitute a three member bench of the Supreme Court to look into the matter.

In June, 2018, the Supreme Court 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).

A three-judge bench comprising of the then chief justice of Pakistan Mian Saqib Nisar, Justice Ijazul Ahsan and Justice Umar Ata Bandial, had heard the case at the apex court’s Lahore registry.

The court had directed that a comprehensive policy regarding tax on mobile phone cards should be charted out.