Illegal mobile service taxes cannot be used in Dam Fund, SC told
 

ISLAMABAD: The Supreme Court (SC) was informed on Wednesday that the illegal service charges/taxes collected from the cell/mobile phones users through the mobile phone bills cannot be recovered and deposited in the Dam Fund relating to construction of Diamer-Basha and Mohmad Dams.The court was informed that the said illegally charged service charges/taxes can be deposited into the Fund only with the express consent of the cell/mobile phone users from whom these amounts were illegally charged.A five-member implementation bench for supervision of progress on the construction of Diamer-Basha and Mohmad Dams headed by Justice Sheikh Azmat Saeed and comprising Justice Umer Ata Bandial, Justice Faisal Arab, Justice Ijazul Ahsen and Justice Munib Akhtar resumed the hearing in the instant matter. The Supreme Court while constituting an implementation bench had also formed a special committee, comprising two directors of State Bank of Pakistan (SBP) and an official of the Supreme Court, to look after the affairs related to the Dam Fund and the investment of amount collected for dams' project.Similarly, the court had also appointed two amici curiae (friends of the court) Makhdoom Ali Khan and Dr Pervaiz Hassan to assist regarding Dam funds utilisation. Federal Board of Revenue (FBR) Chairman Jehanzeb Khan was directed to give proposal if instead of imposing withholding tax on mobile phone money recharge, any surcharge can be imposed on it.On Wednesday, Dr Pervez Hassan filed his submissions on various matters pertaining to the said project. He was responding to a query as to whether the charges collected through mobile phone bills, which had been suspended by the Supreme Court through order dated 16 October 2018, can be collected as a special cess and be made a apart of the donations for the Fund. He contended that the illegal service charges/taxes collected from the cell/mobile phones users through the mobile phone bills cannot be recovered and deposited in the Fund for the utilisation of project.He said that the said service charges/taxes were illegally charged from the cell/mobile phone users hence any refund of these services/taxes should accordingly, be returned to the cell/mobile phone users from whom these amounts were illegally charged.The said illegally charged service charges/taxes can only be deposited into the Fund with the express consent of the cell/mobile phone users from whom these amounts were illegally charged.In this respect, he cited judgment of the Supreme Court titled Engineer Iqbal Zafar Jhagra verses Federation of Pakistan 2103 SCMR 1337 wherein it had ordered for the refund of the illegally charged sales tax amount to the consumers.The learned amicus curie also gave submissions on other points and the court during the course of proceedings, observed that it will examine these submissions.Earlier during the hearing the court rejected the proposal of State Bank pertaining to investment of the amount deposited in Diamer-Basha and Mohmand Dams Fund and sought consolidated proposals from the bank.Executive Director of State Bank while appearing before the court submitted that they would deposit the said amount for three months which will generate 10.5 percent profit.The court, however, observed that the State Bank should have come with various proposals instead of giving just one proposal. Justice Ijazul Ahsen, a member of the bench observed that lots of options are available in the market but the official came up with one proposal.Justice Sheikh Azmat Saeed while admonishing the official told him that he should not appear before the court on the next date of hearing saying Governor State Bank should appear before the court with certain proposals or he may ask another official to appear before the court on his behalf.Similarly, a report on behalf of Chairman Wapda was also submitted before the court and its counsel Saad Rasool informed the court that Wapda is implementing the orders of the apex court in letter and spirit.He said that the project is expected to be launched during the month of March adding that the process of acquisition of land for the project has been completed while the concerned Deputy Commissioner is cooperating with Wapda and had assured that the acquisition of land for the project be ensured.Justice Umer Ata Bandial observed that Wapda should play a constructive role and deal with the project in responsible manner in acquisition of land.Meanwhile, FBR Chairman Jehanzeb Khan also appeared before the court and informed that they have submitted its report on February 14. The court directed Additional Attorney General to go through the report submitted by FBR and assist the court on the next date of hearing.Similarly, Pakistan Electronic Media Regulatory Authority (Pemra) Chairman Muhammad Saleem Beg also appeared before the court and submitted that not a single penny is being charged by the TV for airing public interest announcement particularly regarding the construction of dams.Justice Ijazul Ahsen observed that it is an international practice that public interest announcements are not meant for any payment. The court noted that some fake and wrong news were aired by news channels regarding the advertisement for the dams.Justice Umer Ata Bandial observed that the Regulator should take strict action against such move running fake news. The Pemra chairman submitted that majority of the news channels have ran positive news regarding the projects but added that those ran fake and wrong news were served show cause notices.Justice Ijazul Ahsen asked Pemra chairman to mention on its website that such news were not based on facts. Later, the court adjourned the hearing until April 10.http://feeds.feedburner.com/~r/com/cwEr/~4/9tsRb1kW5z0

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