Here comes yet another tax for cellular users, this time we don’t need to worry about, as this tax is not for telecom services, instead the usage of telecom service will be taken as a measuring tool for someone’s income and those will be taxed whose monthly bill exceeds Rs. 100,000 per year or Rs. 8,333 per month. This decision was taken by Federal Board of Revenue to bring mobile phone users into the tax-net under the new plan to broaden the tax-base in 2008-2009.
Business Recorder has confirmed that FBR had issued instructions to the Director General of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to obtain record of mobile phone users whose annual bills exceed Rs 100,000 and bring them under the tax net.
Along with cellular users, FBR has plans to include frequent air travelers, luxury car holders, large industries and others segments too.
FBR’s this move is not going to harm general users, instead the plan is to attack those elite segment who have not disclosed their assets or income, and are not paying taxes while they are excessively using resources in the country.
In case a person is paying more than Rs. 8,333 per month for his cell phone, then he must be having some revenues to pay tax. In case his company is paying for his phone bills, then his employer has to justify this and has to show the mobile phone expenses.
FBR can issue letters to the cellular phone users with over Rs 100,000 to demand National Tax Numbers (NTNs) or ask the non-filers of income tax returns to file return, if required. On the basis of NTN, the department could check/verify the income of mobile phone user for subsequent filing of return.