The Federal Board of Revenue (FBR) has submitted its reply in Supreme Court today in the mobile bills tax case.

FBR stated that the tax ratio imposed on mobile phone cards is very less in Pakistan than any other Asian countries including Indonesia, Malaysia, Bangladesh and Thailand.

The lawyer of Federal Board of Revenue further stated in the reply that the federal excise duty has been reduced to 17 percent.

According to FBR statement, almost 4.5 billion rupees are collected every month in terms of withholding tax and in the fiscal year 2016-17 RS 51 billion submitted in national treasury in terms of withholding tax.

FBR further told the apex court that approximately 944 billion rupees are collected in terms of withholding tax and same constitutes 70 percent of direct tax collection.

The apex court will hear the case in the coming week.

Earlier this month Chief Justice of Pakistan (CJP) Justice Saqib Nisar has taken the notice of high level of tax charged on the mobile phone cards.

Justice Saqib Nisar questioned under which tax laws private mobile phone companies are deducting such a huge amount?

It is the matter of concern for many people in the country and we have got so many complaints regarding it, he further added.

Top court issued a notice to all the private telecommunication companies in the country and also summoned the attorney general on this issue.

According to the media reports, the apex court will take up this issue in the coming week.

Currently, every mobile phone user on a 100 rupee pre-paid mobile card is paying 19.5 percent federal excise duty, 12.5 percent withholding tax and 10 percent service charges.