Why your Rs 1,000 load isn't Rs 1,000
When you top up your phone, the network deducts taxes before crediting your balance. Income tax under Section 236 is one of them. Sales tax, collected by the province, is another. Together they explain why a Rs 1,000 card gives you noticeably less than Rs 1,000 to spend.
Rates
| Status | Rate | On Rs 500 | On Rs 1,000 | On Rs 3,000 a month (yearly) |
|---|---|---|---|---|
| Filer | 15% | Rs 75 | Rs 150 | Rs 5,400 |
| Non-filer | 75% | Rs 375 | Rs 750 | Rs 27,000 |
Landline bills above Rs 1,000 have a separate 10% rate.
Non-filers and SIM blocking
Since 2024, mobile operators have been required to apply the higher non-filer rate when FBR flags a customer, and FBR has also used SIM blocking against people who are liable to file but don't. If your load seems to be disappearing faster than usual, check your ATL status. Filing a return is the fix.
Can you claim this tax?
Mobile and internet tax under Section 236 is an advance tax. If the SIM or connection is in your name and you file a return, you can adjust it. In practice, many salaried people don't bother because the amounts are small, but a family with several SIMs and a home internet connection can easily pay Rs 15,000 or more in a year.
Your operator can provide a tax certificate showing the total deducted. Most offer it through their app or website.
People below the taxable limit
Students, retirees and others whose income is below the taxable limit have, at times, been able to apply for an exemption certificate or claim a refund of this tax. The process changes, so check with FBR. For most people, simply filing a nil return keeps them on the ATL and at the lower rate.
Internet packages and broadband
Mobile data bundles and home broadband bills are covered by the same section. If you work from home and your internet is in your name, keep the bills. They show tax you've already paid.
A note on sales tax
This calculator covers only the federal income tax. Provincial sales tax on telecom services, generally in the high teens, is charged on top and isn't adjustable against income tax.
How much does a typical family pay?
Take a family of four, each with a prepaid SIM, spending an average of Rs 1,500 a month per SIM, plus a home internet bill of Rs 4,000. That's Rs 10,000 a month in telecom spending. At 15%, income tax alone is Rs 1,500 a month, or Rs 18,000 a year, before sales tax. If the SIMs are in the parents' names and they file returns, all of that can be adjusted. If they're non-filers, the same spending could cost several times more.
Getting your tax certificate
Jazz, Zong, Telenor (Ufone) and other operators let you download a yearly certificate of tax deducted on your number. It usually sits in the app under account or billing settings, or you can request it from customer service. Fixed-line and broadband providers include the tax on each bill. Download the certificates in July or August, before you start your return, so the figures are ready when IRIS asks for them.
Related calculators
- Electricity bill tax calculator, for the other monthly bill where income tax is quietly added.
- Cash withdrawal tax calculator, to see another place non-filers pay more.
- Filer vs non-filer guide, if you want to stop paying the higher rate for good.
If you run a business, phone and internet bills for business use are also a business expense, which reduces your taxable profit on top of the advance tax being adjustable.
Frequently asked questions
How much tax is deducted from a Rs 1,000 load?
Income tax of Rs 150 for a filer under Section 236, plus provincial sales tax. A non-filer may be charged Rs 750 income tax.
Is mobile tax adjustable?
Yes. It is an advance tax that can be adjusted when you file, if the SIM is in your name.
Why is the non-filer rate so high?
The government raised it to 75% to push people who should be filing onto the Active Taxpayers List.
Does it apply to internet packages?
Yes. Mobile data, internet bundles and broadband bills are covered.
Rates: Income Tax Ordinance 2001 and its schedules as amended by the Finance Act 2026, plus FBR's withholding tax rate card for Tax Year 2027. Results are estimates. Check with FBR or a tax adviser before acting on them.