No tax on mobile phone top-ups till there is legislation: SC.
ISLAMABAD -- Pakistan's top court ordered the government and service providers to not to collect any service tax on mobile phone pre-paid credit (top-ups) till there is legislation on it.
In June, the Supreme Court had barred network providers and the FBR from collecting service tax on prepaid cards, saying it was exploitative and illegal.
Prior to the court orders, the consumers were charged 10% service tax, in addition to other taxes, such as withholding tax (5.5%) and sales tax (19%). On a Rs100 prepaid card, only Rs64 are availed by the consumers.
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