Before 1st july there was a gossip in the marketplace that Rs. 41.50 was going to be taken off with regards of taxes on a cellular cards of Rs. 100 denomination and that Rs. 58.5 would be given to a cellular members to make calls.
This was reported in the print and electronic media and also the blogger community belittled govt on this act on the reasons for information offered by cellular operators who were also uncertain about the actual tax framework and the ultimate pressure a members would have to deal with.
After doing a bit of calculations as the withholding tax structure has been revised from July 1st, we can see that there is an increase of Rs. 3 to Rs. 4 in terms of WHT on every card load of Rs. 100 denomination. There is a slight difference in tax deduction procedure of every operator that varies the available balance for user by Rs. 2 to Rs. 3.
Following are the detail of deductions cellular operators are making on every card load.
Warid’s deduction on card load
| Card Value | 100 | 250 | 500 | 1000 | 5000 |
| Deductions at loading | |||||
| 15% WHT | 13.04 | 32.61 | 65.22 | 130.43 | 652.15 |
| 5% Admin Fee plus 19.5% FED | 5.98 | 14.94 | 29.88 | 59.75 | 298.75 |
| 2% Maintenance Fee Plus 19.5% FED | 2.39 | 5.98 | 11.95 | 23.9 | 119.5 |
| Total Deductions | 21.41 | 53.52 | 107.04 | 214.08 | 1070.4 |
| Balance Amount After All Deductions | 78.59 | 196.48 | 392.96 | 785.92 | 3929.6 |
Deduction by Ufone
| Deductions at loading | Rs. 100 |
| 15% WHT | 13.04 |
| 5% Admin Fee plus 19.5% FED | 5.98 |
| 3% Maintenance Fee Plus 19.5% FED | 3.59 |
| Total Deductions | 22.6 |
| Balance Amount After All Deductions | 77.4 |
Deduction by Zong
| Deductions at loading | Rs. 100 | Rs. 250 |
| 15% WHT | 13 | 32.6 |
| 7% operational fee | 7 | 17.5 |
| FED on operational fee | 1.4 | 3.4 |
| Total Deductions | 21.4 | 53.5 |
| Balance Amount After All Deductions | 78.6 | 196.5 |
Companies are further planning to revise the service and maintenance charges in the coming days. In case of Ufone, the maintenance charges will be increased by July 4th resulting in Rs. 24.99 deduction from a Rs. 100 card.
For postpaid subscribers, the withholding tax will be charged on the total amount. For example, if a subscriber gets a bill of Rs. 100, he/she will have to pay Rs. 137.43 after adding 19.5% (Rs. 19.5) FED and 15% WHT (Rs. 17.93) in this case.
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