FBR imposes 15% income tax on prepaid phone cards


The Federal Board of Revenue (FBR) recently imposed a 15% income tax on the sale price of prepaid phone cards. This decision is part of the FBR’s most recent withholding tax rates for fiscal year 2023-24, which includes amendments made by the Finance Act of 2023.

FBR imposed 15% income tax on Calling Cards

Under Section 236 of the Income Tax Ordinance, 2001, the FBR is in charge of collecting taxes on telephone and internet services.

According to the new regulations, internet, mobile phone, and prepaid internet or telephone card subscribers will be subject to a 15% income tax.

The tax will be calculated as 15% of the amount of the bill or the sales price of the prepaid internet card or prepaid telephone card, regardless of the mode of sale, whether electronic or otherwise.

Furthermore, the FBR has specified the tax rates for telephone subscribers whose monthly bill exceeds Rs. 1000, excluding mobile phone subscribers. In such cases, the tax rate will be 10% of the bill’s excess amount.

The FBR is taking this step to broaden the tax net and ensure that users of telecommunication services contribute fairly.

The FBR intends to increase revenue collection and promote tax compliance in the telecommunications sector by imposing income tax on prepaid phone cards and raising the tax rate on high-value bills.

Consumers and businesses should be aware of these new tax rates in order to avoid potential penalties or issues related to noncompliance.

The FBR advises everyone to carefully review their phone bills and prepaid card purchases to ensure accurate tax deductions in accordance with the most recent regulations.

Individuals and businesses with questions or concerns about the new income tax rates on prepaid phone cards can contact the Federal Board of Revenue or consult with tax professionals for guidance and clarification.

Keeping up to date on these tax changes will not only ensure compliance with the law, but will also contribute to the country’s economic growth and development.

To read our blog on “FBR launch an online fee & exemption service for 1% property tax,” click here

Muhammad Kamal
Exit mobile version