Pakistan Imposes 5% Additional Tax on Telecom Services (From 1st July)

Pakistan Imposes 5% Additional Tax on Telecom Services, on Rs100 Mobile Balance, 34.5 Rs Tax will be deducted from 1st July

New presidential ordinances has been Passed, according to which withholding tax was increased by 1.5 percent, to be applicable on all services including Telecom.

Based on this ordinance, all prepaid cards and postpaid bills will be charged 11.5 percent as withholding taxes (charges deducted on card reloads)
Deduction on Card Load = 11.5 % Withholding Tax + 5% Services Charges = Rs. 16.5

After this increase in withholding tax, total taxes on telecom services have reached to 31 percent. Following is the complete detail of taxes on Telecom services:
Withholding Tax: 11.5 Percent
Federal Excide Duty: 19.5 Percent
Total Taxes: 31 percent

Just to add to the misery, all cellular companies are charging 5 percent of the credit as services charges. After these charges, total money deducted from cellular services:
Taxes: 31 Percent
Service Charges: 5 Percent (for prepaid only)
Total Deduction: 36 percent
In simple words, Rs. 36 will be deducted out of every Rs. 100 card load.