Mobile Phone companies win case against federal government

KARACHI Pakistan Mobile Communication Ltd, Pak Telecom Mobile Ltd and Telenor Pakistan (Pvt.) Ltd wins case against federal levy.

The companies challenged the imposition of federal excise duty (F.E.D) at the rate of 75 Paisa per call if it exceeds five minutes. Barrister Makhdoom Ali Khan and Rashid Anwar Advocate represented the petitioners while respondent FBR was represented by Ameer Bakhsh Metlo advocate.

The counsel for petitioners maintained that after 18th Amendment to the Constitution of Pakistan, the Sindh government has levied Sindh Sales Tax on Services Act, 2011 (SSTA 2011) in June 2011 and after this enactment, federal government cannot collect or impose F.E.D.

The bench in its detailed judgment spreading over 19 pages ordered as follows “impugned legislation/Entry 6A to Table-II of First Schedule ultra vires to the Constitution and as a consequence where of is being strike down”.

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