ISLAMABAD: The Supreme Court dismissed the appeal of the bureaucratic BRK for tax collection while barring the government from receiving federal excise duty from internet companies.
According to the details, the Supreme Court heard FBR’s request for tax collection from a private company. At the hearing, the court stopped the government from receiving federal excise duty from internet companies and ordered Internet services exempted from FED.
WhatsApp, Skype and other services did not fall into the category of telecommunication, excluding the FBR’s appeal for tax collection from a private company.
The decision states that WhatsApp and other companies do not charge consumers, internet users prefer to browse or audio video calls, internet calls cannot be taxed on telecommunication service.
The court said that Internet companies charge only service charges, WhatsApp and other charges are call, internet companies do not charge extra, how can they be taxed?
The private company, on the other hand, challenged the tax notice appeals tribunal and the tribunal stayed with the tax collection, which the FBR had referred to the court.