close
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
April 25, 2019

FBR expects Rs15bln collection on cellphone usage in May-June

Business

April 25, 2019

KARACHI: The Federal Board of Revenue (FBR) has estimated collection of Rs15 billion in the last two months of the current fiscal year, following a Supreme Court's decision to restore all taxes on mobile phone usage, officials said on Wednesday.

The FBR officials welcomed the court's decision, especially considering the mammoth shortfall in revenue collection during the current fiscal year.

The apex court suspended tax collection on mobile cards in June 2018.

A senior official said before the SCP decision, the annual collection from cell phone was Rs90 billion.

The federal and provincial governments collect withholding income tax and

sales tax on services on phone connection usage.

The phone companies collect Rs12.5 percent withholding tax on behalf of the FBR.

Meanwhile, the provincial governments collect sales tax on services ranging 17 percent to 19.5 percent.

The total collection of federal and provincial governments was around Rs147 billion.

The FBR sources said the tax collection from mobile phone would help reduce the shortfall in revenue collection in the next fiscal year.

However, in the current fiscal year collection from this head would have nominal impact on total collection.

It should be mentioned that the FBR was facing around Rs500 billion shortfalls in revenue collection during the current fiscal year.

Topstory minus plus

Opinion minus plus

Newspost minus plus

Editorial minus plus

National minus plus

World minus plus

Sports minus plus

Business minus plus

Karachi minus plus

Lahore minus plus

Islamabad minus plus

Peshawar minus plus