Deduction of Taxes on Mobile Load be Stopped from Low Earning Consumers

Islamabad (October 16, 2016): – Parliamentary committee has noticed the deduction of withholding tax/Federal Excise Duty (FED) on mobile cards being used for loading of balance, from customers who don’t fall under taxable limit. Committee also asked Pakistan Telecommunication Authority (PTA) to bound cellular companies to collect all details of consumers before issuance of SIM to avoid any deduction from who are not taxable.

Convener of Sub-Committee of the Committee on Delegated Legislation, Senator Daud Khan Achakzai, while presiding the meeting told that the government deducts Rs. 35 on account of withholding tax etc from the mobile consumers on a card load of Rs. 100. However, those people come under Rs. 100,000 income per year are not accountable to such taxes. To overcome this discrimination, he asked PTA to bound all cellular companies to collect subscriber income information before issuance of SIM and stop the deduction of taxes who does not fall in the taxable list. While interrogating about deducted taxes, Mr. Daud Khan asked FBR where is it placing the collected amount on account of taxes from the consumers who are not NTN holders.

Senator Kalsoom Parveen expressed that that all mobile companies are answerable to the PTA as they are license issuing authority.

Official from PTA briefed the meeting that PTA only deals to regulates functions of mobile companies and it hasn’t mandate to implement deduction of withholding tax from the customers. He further added that “PTA does not regulate fiscal laws but it only regulates services of cellular companies, and adding the deduction of withholding tax is the job of FBR and only they can devise system to avoid deduction of withholding tax from consumers whose income is less than Rs. 100,000 P.Y”.

On the occasion, committee also discussed rules, regulations, notifications and SROs of the PTA. PTA officials informed the meeting that the PTA is an autonomous body and it framed twenty-two regulations under Telecom Act. Further, amendment in Telecom Act can be made through the Ministry of Information Technology with the approval of the Parliament. On the situation, official from Ministry of IT briefed the meeting that the existing Telecom Act is obsolete now and Ministry of Law is working over the amendments in the Act.

One Response to “Deduction of Taxes on Mobile Load be Stopped from Low Earning Consumers”


    Nov 03. 2016

    Call me 03206893343

    Reply to this comment

Leave a Reply