The Federal Board of Revenue (FBR) has decided to conduct the forensic audit of withholding tax being deducted by various cellular companies on recharge of mobile phone cards and bank account holders, Chairman Federal Board of Revenue (FBR) Nisar Muhammad Khan told PAC on Friday.
The National Database and Registration Authority (NADRA) representatives told PAC that they are ready to provide required technical help for conducting the Francis audit of the cellular companies.
They stressed that transparency could be ensured by online transactions and electronic monitoring mechanism should be in place for vigilance.
The Public Accounts Committee special meeting was held at Parliament House under the Chairmanship of the Leader of the Opposition Syed Khursheed Shah in which the members of the body including Shaikh Rohail Asghar, Raja Javaid Ikhlas, Shahida Akhtar Ali, Sardar Ashiq Hussain Gopang, Dr Arif Alvi, Junaid Anwar Chaudhry, Shaikh Rashid Ahmad and concerned officials were also present.
PAC expressed dissatisfaction over the process of the receiving of taxes and their utilization of the amount collecting through mobile phone cards.
PAC Chairman Syed Khurshid Ahmed Shah said that cellular companies were not sharing correct information about revenue collections from subscribers.
Briefing the National Assembly’s Public Accounts Committee here about the method of the collection of the taxes on mobile cards by cellular companies, Chairman FBR Nisar Muhammad Khan said that FBR was collecting 14% withholding taxes on mobile cards.
Giving details of taxes, he said on each mobile cards/easyload 18.50 percent was federal excise duty, 10 percent services charges of the mobile company and Rs 1.50 paisa was being deducted on account of federal excise duty.
Likewise, he said after the deduction of all taxes on the mobile card/easyload of Rs 100, a customer gets credit worth Rs 75.87.
For mobile users living out of Islamabad, he said, the total deduction is more than Rs 26 on each card of Rs 100.
He said FBR receives Rs 12.28 on each card of Rs 100, while services charges are ten percent each.In total, a sum of Rs 36 was being deducted on the card of Rs 100 worth.
Nisar said that in all provinces the tax ratio on mobile cards is separate. In last year, FBR had collected withholding tax amounting to Rs 43.3114 billion last year from cellular companies. While Rs 1.2614 billion revenue had been as excise duty collected from cellular companies.
Auditor General of Pakistan Rana Asad Amin said that FBR collects taxes and its report would be presented to PAC after completion of special audit.
To a question by PAC, chairman FBR said the mobile card data is collected every week and deposited in the national exchequer on monthly basis.
Khurshid Shah highlights the issue of night packages by the cellular companies and said these night packages were destroying the youth adding, the packages should be banned.
Chairman Pakistan Telecommunication Authority (PTA) Ismael Shah assured PAC to resolve the issue of on net calls packages.
Dr Arif Alvi urged the PAC to summon Federal Board of Revenue (FBR), National Accountability Bureau (NAB), State Bank of Pakistan, Security Exchanges and Federal Investigation Agency (FIA) for any steps taken by them regarding offshore companies.
FBR representatives said that the information would be shared regarding the offshore companies.
To replying a question, he said that the export refunds have become circular debt for them and they have decided to pay all export refunds till August 31.
