What law allows 40pc cut on phone card: CJP

ISLAMABAD: Chief justice of Pakistan (CJP) Mian Saqib Nisar on Thursday took notice of the high levy charged on mobile phone cards in the country as he asked under which law Rs40 were being deducted from Rs100 mobile card.

The chief justice questioned as to why such a huge amount was deducted by the private mobile companies and under what tax heads.

The CJP issued notices to all the mobile telephone operators in the country and summoned the attorney general over the issue. At present, as per some reports, on the charge of a Rs100 pre-paid mobile card, a 19.5 percent Federal Excise Duty (FED) is charged along with 12.5 percent withholding tax and 10 percent service/maintenance charge.

According to statistics revealed by the Pakistan Telecommunication Authority in January this year, the number of mobile phone users stands at 144 million as compared to 142.5 million in October 2017.