How is tax on mobile, internet and landline use worked out?
Section 236 has the tax collected on telephone and internet bills, prepaid cards, and units sold through any electronic medium. The company preparing the bill adds it the way it adds its charges, and the seller of a prepaid card or units collects it from the buyer at the time of sale.
Rates in Division V of Part IV
| Case | Tax |
|---|---|
| (a) Telephone subscriber other than a mobile phone subscriber, where the monthly bill exceeds Rs 1,000 | 10% of the exceeding amount of bill |
| (b) Subscriber of internet, mobile telephone and prepaid internet or telephone card | 15% of the amount of bill, sales price of the card, or sale of units through any electronic medium |
| Proviso to (b): persons mentioned in an income tax general order under section 114B | 75% of the amount of bill, card price or sale of units |
For a landline, the calculator reads "exceeding amount of bill" as the part of the monthly bill above Rs 1,000. The 75% proviso is printed under clause (b) only, so the calculator does not apply it to a landline bill.
What is a section 114B general order?
Section 114B lets the Board issue an income tax general order about persons who are not on the Active Taxpayers' List but are liable to file a return. The order may lead to disabling of mobile phones or SIMs, discontinuance of electricity or gas connections, and restriction on foreign travel for citizens, with listed exceptions. Nobody is included unless a notice under section 114(4) has been issued, its compliance date has passed, and the return has not been filed. The Board or the Commissioner may order restoration once the return is filed or the person is shown not to have been liable to file.
Section 236(4) says the tax is not collected from Government, a foreign diplomat, a diplomatic mission in Pakistan, or a person with a Commissioner's certificate that their income for the tax year is exempt.
Where the rates come from
Every rate is read from the Income Tax Ordinance, 2001 as consolidated by FBR. The rates on this page were last checked against the official text on 2026-09-26.
- Income Tax Ordinance, 2001, section 236, telephone and internet users, printed page 481 (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, First Schedule, Part IV, Division V, telephone users, printed pages 556 to 557 (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, section 114B, powers to enforce filing of returns (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, Tenth Schedule, rule 10(l), printed page 785 (as amended to 2026-06-30) official file
Common questions
How much tax is deducted on a mobile load or internet bill in Pakistan?
Division V of Part IV of the First Schedule sets advance tax under section 236 at 15% of the amount of a mobile or internet bill, the sale price of a prepaid internet or telephone card, or the sale of units through any electronic medium.
What is the tax on a landline telephone bill?
For a telephone subscriber other than a mobile phone subscriber, the rate is 10% of the exceeding amount of the bill where the monthly bill exceeds Rs 1,000. A monthly bill of Rs 1,000 or less carries no tax under this clause.
What is the 75% rate on mobile balance?
A proviso added by the Finance Act, 2024 says that for persons mentioned in an income tax general order issued under section 114B, the rate is 75% of the amount of bill, card price or sale of units. The proviso sits in clause (b), which covers internet, mobile and prepaid cards, not the landline clause.
Who is named in a section 114B general order?
Section 114B lets the Board issue an income tax general order about persons who are not on the Active Taxpayers' List but are liable to file a return. A person is included only after a notice under section 114(4) has been issued, its compliance date has passed, and the return has still not been filed.
Does being off the Active Taxpayers' List double the tax on mobile phones?
No. Rule 10(l) of the Tenth Schedule says the Schedule does not apply to tax collected under section 236, so the general 100% increase for people not on the list is not added. The 75% rate applies only to persons named in a section 114B general order.