ISLAMABAD: The Supreme Court on Tuesday called for a study comparing calling rates of different countries with what was being charged in Pakistan.

A three-judge SC bench headed by Chief Justice of Pakistan Mian Saqib Nisar also ordered the federal and provincial governments as well as the Federal Bureau of Revenue (FBR) to submit comprehensive replies explaining why a number of taxes were being deducted on pre-paid cellular scratch cards.

On a suo motu notice, the apex court took notice of public complaints that an unreasonable and high amount of tax and other charges were being deducted from the topping up of the balance through easyload and calling cards besides taxing the calls for every Rs100 charge, Rs40 was deducted in the form of different taxes.

On Tuesday, Attorney General Ashtar Ausaf Ali told the court that for every cellular charge, 5.5 per cent was deducted as a withholding tax, 19pc as sales tax which was 17pc in the capital area and another 10pc as services charges.

At this, the court wondered why the withholding tax was being deducted from 140 million cellular subscribers. “Is this not exploitation,” the court observed.

“This is an illegal way to get money from people,” the court said, adding that all in all 42pc was charged for a single pre-paid card.

When Mr Ausaf cited Section 236 of the Income Tax Ordinance 2001, the Chief Justice observed that the court would take the vires of the law. The case has been adjourned for a week.

Published in Dawn, May 9th, 2018