Paying 5% Extra to Mobile Operators on Every Recharge for NO Reason

Posted by 11 February, 2009
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Illegal 5% Extra by Mobile Operators in Pakistan

While browsing blog, I came through an Open Letter to Chairman PTA Dr. Muhammad Yaseen drawing his attention towards a serious matter regarding the 5% extra deduction by Cellular Companies on recharge.  The letter consists of very valid points. Call me absent minded or whatever but I never noticed, I am paying 36% tax on every recharge (10% Withholding Tax, 21% GST, and 5% so called Withholding Tax). I appreciate someone’s effort to write the letter and representing  approximately half the population of Pakistan.

I hope but not sure that PTA will take any action against this 5% extra deduction on every recharge, this certainly makes no sense.  Please find below the letter (I would suggest the writer to send a hard copy to Chairman PTA, well… there are little to no chances that he would bother to read but still why not give it a try).

Honourable Chairman,
Pakistan Telecommunications Authority

Issue: Charging 5% on Recharge by all Mobile Companies

I would like to take this issue into your kind consideration that for the last few months, to be exact from August 2008, all mobile operators have been charging 5 % extra charges on recharging the balance. I would like to mention following points which are showing that these charges are against all the rules and regulation and make no sense;

  • When all the mobile operators are reducing call rates there is no sense of charging 5 % without giving any reason to the consumer. We still see no further hiring for call centers or network expansion that could really better their service, as they had claimed.
  • In all the businesses and transactions when you are paying any amount to any one, none has to pay penalty for that payment rather relief has been provided to customers throughout the world. Does this 5% extra charges make any sense.
  • After deduction of 31 % taxes (10% with holding tax and 21 % General Sales Tax) all the money goes in to the account of the operators then why this 5 % charges being deducted on recharge. Are they now paying this 5% amount to any powerful personality?
  • We have near 8 crore mobile customers in Pakistan. If we assume that 1 crore of them recharge their account, then it amounts over 100 crore recharge on daily basis. If we calculate 5% this extra deduction, it is estimated that 5 crore are being collected illegally. Why this 5 crore is being looted from innocent customers.

Dear Sir, I would like to make this case a history in the consumer right protection. Your Excellency, it is a matter of make or break. We have to stand up against all the forces which are killing the customer’s right with out any fear and discrimination.

Your decision in this case will be, definitely a wining situation of the consumers and build trust on our system of justice.

Me, and other 90 millions are waiting for your kind decision.

Yours truly,


Letter Source:

Categories : Telecom Tags : ,

February 12, 2009

Wow never ever thought we are being robbed by mobile phone companies like this. They are earning millions daily like this. This is clear cut scamming and I hope PTA chairman would take strict notice of this (He should). If he doesn’t then I’ll be forced to think that he is getting his share from this (JK)

Posted by Tasadduq

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