ISLAMABAD: The Chief Justice of Pakistan Mian Saqib Nisar on Thursday remarked that the tax deduction on mobile cards will remain suspended until the next orders in the case.
A three-member bench headed by Chief Justice heard the case.
During the hearing, he clarified that the court had not suspended the deduction of taxes imposed on the top-up of prepaid cards by cellphone service providers and the Federal Board of Revenue (FBR) for only 10 days.
The decision of the Supreme Court came on June 11, restraining FBR and cellular companies from deducting withholding tax and other charges on prepaid cards till further orders.
The court expressed resentment over the companies and described the deductions as exploitative and illegal.
“The public is being looted here. How can tax be received from a pushcart vendor? Deduct tax from the person whose mobile phone usage is more than set limits,” remarked the CJP.
“How can tax be received from a person who does not come in the tax net? It is illegal to provide Rs64.38 to a person who charges Rs100 card in his phone. A comprehensive policy should be made over the tax deduction,” directed the court.