In June 2018, the honorable Supreme Court suspended withholding tax, sales tax and service charges. The same was complied by the Cellular Mobile Operators (CMOs) in letter and spirit and a balance of Rs. 100 was received upon recharge of Rs. 100.
It is imperative to mention that Pakistan Telecommunication Authority (PTA) is not regulating prices of CMOs except for Significant Market Power (SMP) operator as the mobile market is competitive. As result of suspension of taxes and service charges, CMOs adjusted the prices of standard prepaid tariff packages. In case of hybrid bundles / monthly cards, additional incentives were provided to the subscribers in the form of voice, SMS and data.
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On 24th April 2019, the Supreme Court of Pakistan passed the following order:“For reasons to be recorded later this Human Rights Case is disposed of without interference in collection of public revenues and all the interim orders”. After restoration of taxes by the honorable Supreme Court of Pakistan, CMOs have not increased the rates instead they have applied Withholding tax, General Sales Tax / Federal Excise Duty and service charges on the existing tariffs.
PTA is vigilant about the rates / tariffs being charged by CMOs and action will be initiated on any reported incidence of charging above the published tariffs and applicable taxes.
