ISLAMABAD, Aug 26 (APP): Minister for Parliamentary Affairs Azam Nazir Tarar on Monday informed the National Assembly that Tax rate is mandate of FBR/Provincial tax Authorities, and Mobile companies cannot increase any tax rates unless notified by FBR or relevant provincial authorities.
Replying to a question during Question Hour, he said Tax rates are not changed in recent past, except as in relevant budgets of national or provincial assemblies. Tax rates for provincial or national taxation are same for all mobile companies, and all such collections are deposited to relevant revenue authority, he said.
He said it is a fact that tax is charged accordingly to the process as defined by relevant tax charging authority of Government of Pakistan, by virtue of which, tax is charged on recharge and as per usage of relevant service usage.
Accordingly, re-charge is considered a separate activity and use of service is different, accordingly further charge of tax is made as service being used, he said.
He said this charging mechanism is in line and as per directives of relevant national/provincial revenue collection authorities. Tax rates are circulated by relevant revenue authorities and mobile companies are nothing to do in this respect, he said.
He said accordingly, as soon these rates are cumulated, mobile companies are bound to charge, collect and deposit such tax on such ratio as notified by relevant authorities.
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