ISLAMABAD: The Federal Board of Revenue (FBR) on Friday informed the Public Accounts Committee (PAC) that it collected Rs43.3 billion withholding tax from the consumers of cellular services.

Briefing the PAC on tax collection from mobile phone cards, FBR Chairman Mohammad Nisar Khan said that a consumer gets just Rs63 when he/she uploads Rs100 worth of mobile phone scratch card because certain taxes are automatically deducted from the balance.As per FBR’s statement total deduction of government taxes on mobile cards is Rs26.59 and Rs63.41 balance left with the consumer in each Rs100 card.

The FBR chief briefed the committee that during the last fiscal year, the board generated Rs20 billion after withholding tax was imposed on banks transactions. He, however, said that the amount was not that much as was expected.

He said that the FBR had decided to conduct forensic audit of the amount received by banks in terms of withholding tax.

Officials of National Database and Registration Authority (Nadra) suggested to the PAC to direct FBR to conduct forensic audit of transactions made through cellular services. They also recommended that the transactions through mobile phone should have been monitored electronically.

In response, the FBR chairman told the committee that Pakistan Telecommunication Authority (PTA) has been taken on board for the said forensic audit.

The committee directed the FBR to submit a report on the sales tax collection in Gilgit-Baltistan and Fata in next meeting.

Published in Dawn, July 16th, 2016

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Last call
Updated 15 Nov, 2024

Last call

PTI should hardly be turning its "final" protest into a "do or die" occasion.
Mini budget talk
15 Nov, 2024

Mini budget talk

NO matter how much Pakistan’s finance managers try to downplay the prospect of a ‘mini budget’ to pull off a...
Diabetes challenge
15 Nov, 2024

Diabetes challenge

AMONGST the many public health challenges confronting Pakistan, diabetes arguably does not get the attention it...
China security ties
Updated 14 Nov, 2024

China security ties

If China's security concerns aren't addressed satisfactorily, it may affect bilateral ties. CT cooperation should be pursued instead of having foreign forces here.
Steep price
14 Nov, 2024

Steep price

THE Hindu Kush-Himalayan region is in big trouble. A new study unveiled at the ongoing COP29 reveals that if high...
A high-cost plan
14 Nov, 2024

A high-cost plan

THE government has approved an expensive plan for FBR in the hope of tackling its deep-seated inefficiencies. The...