No Tax on Mobile Cards Could Cause Loss of Rs. 123 Billion to National Exchequer

The Supreme Court, a few days back, suspended all sorts of taxes including services charges on mobile cards. The decision was welcomed and appreciated by the general consumer, however, it doesn’t bring good news for the national exchequer.

According to reports, the tax exemptions will result in a combined yearly loss of Rs. 123 billion to federal and provincial governments.

The provincial governments will share Rs. 75 billion of the total loss while the remaining Rs. 48 billion will be borne by the federal government.

The FBR, at the federal level, will see a monthly loss of Rs. 4 billion at the current 12.5% tax rate. The amount will total to Rs. 48 billion in the next 12 months as the tax exemption takes effect.


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The tax regulator was collecting 19.5% tax at the provincial level on mobile cards, totaling to Rs. 75 billion annually. This tax will be dropped as well resulting in the loss of the said figure. For now, the exemption will be effective for at least 15 days starting June 13. Supreme Court has ordered FBR to develop a plan to exempt untaxable individuals from the taxes.

In case the tax waiver goes effective for the whole year, the FBR will see a revenue loss of Rs. 123 billion.

The Board’s Response

The FBR submitted its stance on the taxes to the Supreme Court in an attempt to justify the taxes. Explaining about the imposition of taxes, FBR told that the court that Supreme Court’s bench validated the income tax back in 2003.

About the Withholding Tax (WHT) on mobile phone cards, the board added that this is an adjustable tax which the filers claim while filing returns.

The response further added that the WHT was previously charged at 14.5% which was brought down to 12.5%. It was scheduled to be further lowered in the coming days, FBR added. However, the court was having none of it and decided to exempt all taxes on Rs. 100 cards.

Lastly, the FBR requested the court to constitute a larger bench in case it takes up the issue again. Currently, a three-member bench is hearing the case in the apex court.


  • afzal khan

    now Rs. 123 Billion will not go directly in economical terrorist pocket , or call it a jagga tax will not be looted by telecom useers, but don’t you worry these bastards have 100’s more ways to find a way

  • usama

    We should also think about nation welfare instead of tax collection greed.Proud of supreme Court of Pakistan keep it up.

  • hahah

    Yes less hard earned money of Pakistani will go in the pockets of the looters

  • ABKhan

    It is not a loss to national exchequer. It would be 123 billion less looted illegally from the public’s pockets

  • Saitama

    There is no loss. The FBR just wants to tax poorer common people on Rs 100. Why not tax the BILLIONS that Government and Army officials have invested in their personal businesses??? The FBR is too scared to go after the real money.

    • Athar Shahab

      How can FBR tax the powerful people who practically own this country, do you think there is any hope of a few hundred voracious cats to bell themselves in order to protect 200 million+ mice!

  • Athar Shahab

    today I loaded Rs 100 & got the same balance, without the initial cut. Thanks Supreme Court of Pakistan.!

  • Ahtysham Afzal

    It means they have eaten our 123 billion x 10 years of tax = 1230 billion of tax from Pakistani people. Where did they spend that? I see no difference in education, health, social security, electricity, water or anything at all.

    Everything is getting worse and worse everyday. We all should vote right person this time!

  • Arsalan Shah

    Thank you Nawaz Sharif for giving us full credit on Rs. 100 card load. Long Live Shairrrrrrrrrrrrrrrrrrrrrrr!!!! Please vote for Nawaz Sharif and Ishaq Dollar. If you want tax-free card load.

  • Carl

    Loss, Kaisa Loss, ye to tha hi nahin kabhi govt. ka … double tax deduction ho raha tha… balance topup per & Usage per bhi.. .which is totally wrong. puri duniya mein kaheen aisa nahin hota..