The Supreme Court of Pakistan has released its written verdict on the case regarding taxes charged on phone calls by cellular service providers.
The verdict revealed that the federal and provincial governments have been asked to submit the details of taxes charged on phone calls in the last year.
The court also raised questions on Section 184/3 being implemented on the matter. The court remarked that the article in question is not applicable to the tax collection on phone calls.
“Is it possible to charge federal excise duty (FED) on the services being provided by the companies”, states the verdict. “Can the tax be collected in advance from the taxpayers?” the court questions.
Furthermore, the verdict stated that the Attorney General has maintained that the issue of mobile taxes is beyond the scope of public interest. The advocate generals of Sindh, Punjab, and Balochistan have agreed.
The court recommended Chief Justice of Pakistan Justice Asif Saeed Khosa to form a three-member bench of the apex court to look into the matter.
A two-member bench of the top court including Justice Qazi Faez Isa and Justice Ijazul Ahsan wrote the verdict. It has directed to form a comprehensive policy on imposing a tax on mobile phone cards.
On March 27, the said bench heard the case and reserved the verdict. Last year, the apex court had eliminated the taxes on the mobile phone cards charged by the cellular companies and the Federal Board of Revenue.