ISLAMABAD - Chief Justice of Pakistan Mian Saqib Nisar on Thursday took a suo motu notice of unreasonable deduction of money by the cellular companies on calling cards.

Chief justice also a issued notice to the Attorney General for Pakistan to explain as to how much and what amount is being deducted or taxed on a calling card/easy load of Rs100.

The Federal Board of Revenue (FBR) is also issued notice on the matter. The Chief justice has also issued notices to all the cellular companies including Mobilink, Ufone, Zong, Telenor. While taking notice, Chief Justice Mian Saqib Nisar observed that Rs60 credited on a card of Rs100, adding it is the matter of public importance.

He also observed that many complaints from the general public regarding deductions of a huge amount in the name of multiple taxes are being circulated.

The matter has been fixed for hearing May 8.

Earlier in February of this year, Senate Standing Committee on Information Technology and Telecommunication had also expressed concern over 42 per cent taxes on Rs100 mobile card, mostly used by non-filers or poor segment of the society.

The committee had decided to make legislation on the issue and give exemption of taxes for the people using Rs200 or Rs500 per month. The FBR had also informed the committee it had rejected a proposal of cellular companies for settling their tax disputes through Alternative Dispute Resolution Committees (ADRCs).

It was further informed that forensic audit of all the four mobile companies would be completed by June 2018.

The analysis of transactional data of withholding taxes of massive number of subscribers of each cellular company generated on daily basis is one of the major challenges.

In order to overcome the challenge, FBR launched a pilot project for devising an IT-based mechanism. Under the pilot project, the FBR developed a software utility portal. 

All the four companies are required to upload their monthly customers’ transactional data on the portal. 

This pilot project/mechanism has been enabled during the current financial year 2017-18 and all four mobile phone companies are now transmitting/uploading their customers’’ transactional data.

During the proceedings of the committee, cellular companies’ representatives said that they were facing very high tax rates and there was s a need for tax harmonisation across provinces and the federation (rates & criteria).