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Income Tax of 15% Imposed on Prepaid Phone Cards by FBR for FY 2023-24
The Federal Board of Revenue
(FBR) has imposed an income tax of 15% on the sales prices of prepaid phone
cards as part of its revised withholding tax rates for the upcoming 2023-24
fiscal year.
Under Section 236 of the Income
Tax Ordinance 2001, the FBR is responsible for collecting taxes on telephone
and internet services. The new 15% income tax will apply to subscribers of
internet, mobile phones, and prepaid phone or internet cards.
Specifically, the tax will be
calculated as 15% of the amount of the bill or the sales price of the prepaid
internet or phone card, regardless of how it was sold - online or offline.
For regular telephone subscribers
whose monthly bills exceed Rs. 1000, the tax rate will be 10% of the amount
exceeding Rs. 1000.
The purpose of this move is to
expand the tax net and ensure telecom service users pay their fair share of
taxes. By taxing prepaid cards and charging higher tax on higher bills, the FBR
aims to boost revenue collection and promote compliance in the telecom sector.
Both consumers and businesses
should be aware of these new tax rates to avoid penalties for non-compliance.
Taxpayers are advised to carefully review their phone bills and prepaid card
purchases to accurately deduct the correct taxes.
Those with questions or concerns
about the income tax on prepaid cards can contact the FBR directly or seek
guidance from tax professionals for clarification and guidance. Staying
informed about these tax changes will help ensure compliance with the law while
also contributing to Pakistan's economic development.
