KARACHI: Cellular companies including Digicom (Q-Mobile) and Allied Electronics have taken stay-order from Sindh High Court in a case against Federal Board of Revenue, pertaining to increase 3 per cent Value Added Tax (VAT) on import of cellular phones, it is learnt here.
Sources informed Customs Today that the cellular companies are of the view that they are already paying 17 per cent sales tax and not in the favour to pay 3 per cent VAT on import of cellular phones.
It is pertinent to mention here that the cellular companies have already challenged the SRO280/2013 in Islamabad High Court and adopted the view point that FBR after introduction of 18th amendment was not authorized to issue any SRO without the consent of Prime Minister of Pakistan. However, SRO280/2013 permitted that the Head of Department/Ministry can issue any SRO, as the 18th amendment delegates the power to ministry concerned to issue SRO.
Later, Islamabad High Court rejected Petition No.2340/2013, filed by the cellular companies, and ordered them to deposit fixed duty costing Rs 1,026 million into national exchequer, on which Pakistan Customs enchased the bank guarantees and pay-orders of the cellular companies.
