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.
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