The Islamabad High Court recently confirmed the Pakistan Telecommunication Authority’s (PTA) directive for ZONG, a major digital and telecommunication service provider in Pakistan, to refund over Rs 2 billion to its customers.
Justice Mian Gul Hassan Aurangzeb rejected Zong’s appeal against the PTA order, which requires the company to return Rs2,028,038,584 collected from 26.04.2019 to 12.07.2019 through various service and operational fees.
In its ruling, the court noted that cellular operators, including Zong, had imposed a Rs10 charge on customers for each Rs100 prepaid card as part of assistance, maintenance, or administrative service charges. Justice Aurangzeb referenced a Supreme Court order stating that such service charges were neither valid nor legally applicable to the amounts customers loaded onto their mobile devices.
The court deemed Zong’s appeal against the PTA’s decision unsustainable and directed Zong to furnish complete details of the service and maintenance charges it has collected since 24.04.2019.
Furthermore, PTA has instructed Zong to issue refunds of the specified amount to all affected subscribers as a balance with no expiration date.
Previously, the Pakistan Telecom Operators Association raised concerns regarding the heavy taxes imposed in the 2024 budget. In a communication to Salim Mandviwala, Chairman of the Standing Committee on Finance, the association warned that unresolved tax issues might deter foreign investment in Pakistan. The sector, having contributed PKR 340 billion in tax revenue last year and attracted USD 15 billion in direct investment to date, highlighted that two major market players are considering exiting the Pakistani market due to these tax challenges.
