Get ready to pay Tax on Cellular Services from 1st July

  

Get ready to pay Tax on cellular services from 1^st July. Mr. Ishaq Dar, the Finance Minister, said that the tax rate on cellular services will be additional 5 percent, which was previously settled at 10 percent for last many years. Now the telecom customers will have to pay Rs. 41.5 out of Rs. 100 as taxes and service charges. The decision of imposing tax on telecom services has been taken after consultation with the concerned stakeholders, said  the Finance Minister.

The tax  on the cellular services is as following

• WHT: 15 percent
• FED: 19.5 percent
• Total: 34.5 percent

Beside the above mentioned government taxes, all the telecom operators in our country are deducting 7 percent service charges.
If the customers load Rs. 100 card he/she will  have to pay the following taxes

• WHT (15 percent): Remaining amount after tax Rs. 85
• Cellular Charges (7 percent): Remaining amount after tax Rs. 78
• 19.5 percent of the FED will also be deducted from Rs.78 and the remaining amount will be Rs. 58.5
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