The Supreme Court of Pakistan (SC) ordered on Monday a suspension in deduction of taxes on prepaid mobile phone cards.

The Chief Justice of Pakistan, Justice Mian Saqib Nisar, was heading a three member bench in suo motu case regarding an increase in taxes on prepaid scratch cards at Supreme Court's Lahore Registry.

Chief Justice Saqib Nisar ordered the suspension of increase in taxes and gave authorities two days to implement court orders. He further directed authorities to draft a comprehensive policy regarding deduction of taxes on mobile phone usage.

Justice Saqib Nisar said, "Taxes should be taken from users whose mobile phone usage is above the set limit."

"Service providers and Federal Bureau of Revenue (FBR) charge taxes on pre-paid scratch cards and are looting people.” the bench Judges remarked.

"How are taxes being charged from those who do not fall in the tax network?" the bench asked the FBR chairman.

The bench further stated, "It is illegal that Rs 64.38 are charged as taxes on a Rs 100 prepaid scratch card."

Justice Ijazul Hasan asked the FBR chairman, "How can you take taxes from a hawker?"

Earlier, in last month, the CJP had ordered federal and provincial governments and the FBR to respond as to why so many taxes were being deducted on prepaid scratch cards.