Petition Against Tax Hike on Telecom Services Filed in SC

supreme-court-of-pakistan-nroA petition has been filed in the Supreme Court of Pakistan seeking the exception on tax hike announced in recently announced annual budget.

Petitioner made Federation of Pakistan the respondent through secretary Ministry of Law and prayed that  tax increase on telecom services be declared ultra vires of the Constitution.

As an interim relief, petitioner requested the court to instruct the Federation not to deduct any tax imposed through the Finance Bill 2013 on the subscribers using mobile phone service until the disposal of this petition.

Petitioner prayed that the increase in tax on the telecom sector violated the fundamental commitments of the Constitution made in Article 4 and leaves the persons for the time being in Pakistan with an irremovable handicap in commercial competition and fair play.

Shahid Orakzai, the petitioner, contended his case on three points:

  1. Whether the Federation can impose any tax in the Finance Bill which is to be collected through a foreign commercial enterprise?
  2. Whether the Federation can impose any tax on the business or clientele of a foreign commercial enterprise which is against the letter and spirit of their mutual contract?
  3. Whether a foreign commercial enterprise, being a person for the time being in Pakistan, can be discriminated in Federal taxation?

Petition said that ridiculous taxation has rocked the telecom sector and knocked out the feasibility of doing any profitable business in Pakistan. He said that none of the telecom companies could perceive such taxation in a country where mobile phone communication has changed the face and pace of life.

Petition said that his business, and business of a common man will get affected because the irrational taxation will have a catastrophic fall out on the inflow of money and communication technology, which will eventually make investors take a u-turn.

It merits mentioning here that government of Pakistan deducts 19.5 percent FED on telecom services, while another 15 percent WHT – which was 10 percent before 2013 budget.

It maybe recalled that taxes on telecom services in Pakistan are second highest in the world after Turkey.

  • Good Job par mere bahi yehan pay foj, adalat aur politicians sub milay hway hian.

    “Lotoo aur Photoo” Zindabad.

  • Few days ago I read some articles on this budget and then the manuscript. Since then I came to the conclusion that, to fill the budget deficit and impress IMF this govt wanted aggressively to increase the tax revenue.

    To do this there is two ways. One is to actively peruse the hidden and rich Fishes. the land lords, the millionaires, Who are just 1% or 2% in population, but hold over 90% of resources, and they pay no taxes or very low taxes by hiding the facts from corrupt FBR. If you don’t believe just check their annual financial statements.

    An example is over beloved parliamentarians.

    The second and easy way is to target the common people.
    This is so easy and can be done just sitting in air conditioned rooms without any big paper work or fear, and almost every corrupt govt and department uses it.

    But this time there was a little hope that after learning from previous lessons now PMLn is much mature, and at least will not forget their premisses of election campaign.

    Then in start of June I read that MR. Ishaq Dar spent 2 days and nights in FBR office without sleeping, to prepare the finance bill.
    I was impressed and glad that finally someone is concerned about us, and a relief is on way for poor. but…

    But after the announcement, I was forced to rethink.
    The whole budget was just a source of taxes. Their was countless of articles and sub articles with new/revised Taxes and specially Mr. Dar used this so-called “Withholding tax” like a special weapon.

    By definition we know this is an advance form of Income tax for salaried employes and registered Companies but Mr. Dar wants to impose it on every sector. Huh…

    Coming to the subject…
    Now who can tell Mr. Dar? that how can he justify it on a mere 100 rupees mobile card?
    And who can tell him? that over 90% of mobile users are common people which don’t have the taxable income or NTN number.

    Since the matter is now in Court’s hand. I hope the justice will be done in public favor, and the govt be stopped from collecting this cruel tax, not only from mobile sector, but from every sector where common man is targeted.

    P.S. I read that they also imposed it on National Savings investments of upto 1.5Lakh… which was previously exempt?.
    Good work Mr. Dar, you even crossed the cruelty of PPP:(

    • meray khayal se pehlay unn ko pakra jaey jo har IMF k loan ko harrap kar gaey. awam par tax laga kar ye kun poora karna chahtay hain khasara?

    • In fact, it is even worse than that. I read in the Tribune paper that when Dar went to negotiate with IMF for $5 Billion, he was actually trying to negotiate so the rich DON’T have to pay more. And then he claimed he was negotiating for the “National Interest”!

      Can you believe it??? This is not even the Old Pakistan, this is the Reverse Gear Pakistan.

  • Current government is an even bigger disappointment for people of Pakistan. If they are taking the loans from IMF same way, if they are over burdening the people same way then they are good for what? May Allah bless this country with truly honest and loyal government.

  • Kia ap ko Iftekhar Muhammad Chaudhry se tavaqa hai k wo koi aisa faisla de den gay jo N League ki policies k against ho, jab k society is saying that he is member of B Team of PML(N). dekho k zulm ko roknay wala kon ata hai pakistan men jab na insaafi apnay joban par ponch gai hai.

  • >