Business
How much balance you will get from Rs100 card after mini-budget?
Advance tax rate on telecom services has been increased from 10 per cent to 15 per cent
Islamabad: The advance tax rate on telecom services has been increased from 10 per cent to 15 per cent in the federal government’s mini-budget, as a result of which users who charge a balance of Rs100 will now get a balance of Rs 86.96.
It is pertinent to mention here that the mini-budget abolishes tax exemptions of Rs343 billion. Consequently, around 150 items will be taxed.
Mobile phone consumers already pay heavy pay taxes on telecommunication services. For prepaid users, most of the taxes are deducted when they recharge the prepaid cards. After the approval of the mini-budget, they are paying Rs3.9 more on every Rs100 recharge.
According to the mini-budget proposal, advance tax Rs13 out of the balance of Rs100 card of consumers will be deducted, which was Rs9 10 earlier. At present consumers get an available balance of Rs86.96 on an Rs100 recharge after tax deductions.
The available balance will be reduced from 90.9 to Rs86.96 after the increase in the advance tax rate. Consumers will continue to pay 15% on the balance of Rs100 in terms of sales tax.
After the mini-budget, telecom customers will be charged Rs14.04 in sales tax and advance tax on balance of Rs100.
It may be recalled that before the mini budget, consumers used to get a charge of Rs90.9 on a balance of Rs100.