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FBR to devise mechanism for non-deduction of WHT from mobile users

FBR to devise mechanism for non-deduction of WHT from mobile users

ISLAMABAD:  Federal Board of Revenue (FBR) to devise a mechanism for non-deduction of withholding tax from mobile users, it is learnt here.

Sources told Customs Today that the basic reason to form a mechanism is to exclude those mobile users who do not fall under the tax net.

Sources said that around 99.3 percent people do not fall in the tax net, but the government collects around Rs47 billion under the head of withholding tax.

However, the cellular companies currently have no technical solution to differentiate between return filers and non-filers, but it is possible if the FBR is ready to provide data of return filers.

Meanwhile, the mobile customers used to pay at least 25 percent of their money in taxes/charges at the time of card load. Then there was another 18.5 percent general sales tax on each call taking the total toll of deductions to around Rs40 on Rs100 card.

It is important to mention here that Supreme Court of Pakistan, in a suo motu notice suspended all taxes and service charges with effect from June 13, 2018.