Thursday, August 11, 2022

Finance Ministry Justifies Tax Withholding on Mobile Recharge

Finance Ministry says that paying tax Mobile Recharge is necessary because there is an illegal economy, a small tax base, and not enough money coming in.

Even if your income is too little to pay tax, you can still file and get a return. Students, people who bet every day, and people who get money from Ehsas all have taxes taken out of their pay. There is a tax of 15% on each recharge. Adding Rs. 13.04 to recharge of Rs 100 results in an additional Rs 13.04.

People in Islamabad who utilize telecommunications services more than once are subject to a 19.5% FED surcharge. (Rs 16.52 for something that costs Rs 86.96) (ICT). Outside of ICT, provincial law uses the GST to tax communication services.

The 2001 Income Tax Ordinance calls income that is tax┬á“2001 income.” According to the following statement, withholdings are a form of income. Because there is no tax base or way to get money from an underground market, recharging a smartphone is taxable.

There are a number of ways to broaden the tax base and bring in more money. There should be a link between the informal and regulated sectors so that people in the latter can find out about potential taxpayers. Even if your income is too low to get a refund, you still have to file a tax return.

Pakistan’s Supreme Court has said that taxing cell phones is legal, according to ministry officials.

In Pakistan, taxes are an absolute must. All you have to do to get your money back is fill out an income tax return. The Supreme Court says that a recharge tax on mobile phones is allowed by the Constitution. Also, it’s important to note:

Read more: Flooding and Torrential Rains Disrupt PTCL & Ufone Networks in the Southern Region Quickly

Under the Income Tax Ordinance, 2001, taxpayers with low incomes can’t get a certificate. Anyone whose income is covered by the Income Tax Ordinance, 2001 can get an exemption certificate.

The Ministry of Finance says that this tax is neither the lowest nor the highest in the world. If you file your taxes, you might be able to get a refund. Even if your income is below the taxable threshold, you can still get a tax refund.

Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments
Latest news
0
Would love your thoughts, please comment.x
()
x