Tax on mobile top-ups to be restored from today

ISLAMABAD: Taxes will be charged on all mobile phone top-ups from Saturday (today) as per the Supreme Court’s order.

Earlier this week, the apex court allowed cellphone service providers to deduct levies on top-up of prepaid cards months after stopping them from tax deduction.

With the restoration of taxes on scratch cards, as much as Rs25 will be deducted on every Rs100 card.

The apex court, while reserving the verdict in the case, issued a short order taking back the interim order issued in June last year which barred cellphone service providers to charge taxes on mobile top-up.

Chief Justice Asif Saeed Khosa had read out the short order, saying the top court would not interfere in matters related to taxation.

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.