Business

Mobile recharge taxes continue to hit consumers

Published by
Abdul khalique

ISLAMABAD: Mobile phone users in Pakistan continue to face significant tax deductions every time they recharge their prepaid balance, leaving them with considerably less than the amount they pay.

According to the current tax structure, a customer who loads Rs100 into a prepaid mobile account receives only around Rs72.77 as usable balance, while approximately Rs27.23 is deducted in taxes.

The first deduction is made in the form of Advance Income Tax, which is charged at 15%. On a Rs100 recharge, around Rs13.04 is deducted under this tax.

After the advance income tax deduction, the remaining amount is further reduced by Sales Tax, which is levied at around 19.5%. This results in an additional deduction of approximately Rs14.19.

As a result, prepaid mobile users receive only Rs72.77 in available balance after all applicable taxes are deducted from a Rs100 recharge.

Tax Breakdown on Rs100 Mobile Recharge

Description Amount (Rs)
Recharge Amount 100.00
Advance Income Tax 13.04
Sales Tax 14.19
Total Tax Deducted 27.23
Usable Mobile Balance 72.77
Abdul khalique

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