LAHORE: Tax authorities have generated revenue of Rs. 91.429 billion from the taxes deducted on mobile phone usage during the last three financial years. Under the head, an amount of Rs. 27.514 billion as Income Tax was collected from mobile phone users in 2010-11, Rs. 36.843 billion in 2011-12 and Rs.27.072 billion were amassed during 2012-13.
An official data revealed that there exists a mechanism to collect tax on mobile phone cards as Section 236 of the Income Tax Ordinance, 2001 provides for collection of tax on telephone bills and prepaid cards. The person issuing or selling prepaid cards collects Advance Tax from the purchasers at the time of sale of cards. The income tax collected is deposited in the national exchequer on weekly basis as required under Rule 43 of Income Tax Rules 2002.
For the purposes of monitoring of tax collection monthly withholding statements are filed by mobile phone companies, as prescribed under Rule 66 of the Income Tax Rules, 2002.
