Mobile users secretly slapped with unauthorised tax

Tuesday, October 14, 2008 By Muhammad Ahmad Noorani ISLAMABAD: A mysterious five per cent service charge on about 80 million pre-paid customers was imposed, the PTA and cellular companies have confirmed. Before the budget 2008-09, the pre-paid customers were charged 10 per cent withholding tax on every new load, which was deducted in advance. The customers were also paying 15 per cent sales tax on every call. However, the present government increased the sales tax from 15 per cent to 21 per cent for mobile users by declaring the mobile phone a luxury item. Along with this the government also levied Rs750 import tax on the sale of every handset even if it was worth Rs1000. In the present situation the pre-paid mobile users are supposed to pay Rs29 in taxes for every Rs100 used. According to a senior PTA official the active... [read full story]