Islamabad, September 4, 2025 – The Federal Board of Revenue (FBR) has officially notified the advance tax rates applicable on the use of telephone and internet services during the tax year 2025-26. The notification was issued through the updated Withholding Tax Card 2025, which incorporates all amendments made to the Income Tax Ordinance, 2001 under the Finance Act, 2025. According to Section 236 of the Income Tax Ordinance, the government is empowered to levy advance tax on telephone and internet usage. The provision outlines clear rules for both subscribers and prepaid service users, ensuring a uniform mechanism for tax collection. For fixed-line telephone subscribers (excluding mobile phones), if the monthly bill exceeds Rs. 1,000, the applicable tax rate will be 10 percent on the portion of the bill above that threshold. In the case of internet and mobile telephone services, as well as prepaid telephone or internet cards, a higher tax rate of 15 percent will apply on the total bill amount or the sale price of the prepaid card or electronic units. The law further specifies the responsibilities of service providers. The company or authority issuing telephone or internet bills will be required to charge and collect the advance tax in the same manner as they charge the service fee. Similarly, entities selling prepaid telephone or internet cards, or issuing units…