No more payment of service charges required for pre-paid scratch cards

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  • Users will now receive a balance of 88.9 PKR on a scratch card of 100 PKR. 
  • The imposition of maintenance charges was forbidden by the apex court in April.
  • Users don’t have to pay maintenance charges on pre-paid cellular scratch cards; PTA spokesperson.

The cellular service providers have started to implement the apex court’s orders to remove the maintenance charges on pre-paid mobile phone scratch cards, tells Pakistan Telecommunication Authority’s spokesperson Khurram Mehran as of today as per media reports.

Users will now receive a balance of 88.9 PKR on a scratch card of 100 PKR.

Earlier, mobile phone service providers were ordered to apply the 12.5 percent withholding tax and to abolish the 10 percent service charges, added the spokesperson for PTA.

These taxes were first suspended by former Chief Justice of Supreme Court via a Suo moto notice on the public complaints saying the matter was of public interest. However, in April 2019 the apex court restored the deduction of withholding and sales tax on the pre-paid cellular scratch cards.

The only exception was the statement by the top court to forbid the imposition of any services charges.

Timeline for withholding tax, sales tax, and services charges

 

Also See: GAFA Tax: France Hits Back On The US By Imposing Tax On Google, Apple, Facebook, And Amazon

 

June 2018

The honorable Supreme Court suspended withholding tax, sales tax, and service charges. The same was compiled by the Cellular Mobile Operators (CMOs) in letter and spirit and a balance of Rs. 100 was received upon the recharge of Rs. 100.

April 2019

“For reasons to be recorded later this Human Rights Case is disposed of without interference in the collection of public revenues and all the interim orders,” read the statement of the apex court. After the orders of the honorable court, the CMOS did not increase the rates but applied Withholding tax, General Sales Tax and service charges on the existing tariffs.

 

Do you think that the reversal of withholding and sales tax charges by the court’s decision was the right step? Let us know in the comment section below

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