The charges and taxes levied on imported mobile phones are now being thoroughly reviewed by the Federal Board of Revenue (FBR).
Due to widespread inflation, this measure was urgently needed because mobile phone prices have been steadily growing. Luxury phones start at 300,000 PKR and only increase in price, while standard phones currently cost between 50,000 and 80,000 PKR.
But thankfully, the government intends to implement measures that will cut taxes for consumers in the upcoming fiscal year 2023–24 (FY24).
Tax Structure To Change For Imported Mobile Phones in Upcoming Budget 2023-24
According to FBR, the forthcoming budget will make significant changes to the taxation on imported mobiles. The 18 percent sales tax rate will not change, but luxury goods will be subject to a 25 percent sales tax.
There won’t be any changes to the withholding tax or sales tax structure. However, beginning on July 1, 2023, there are plans to substantially lower regulatory and customs taxes on imported mobiles.
The regulatory duty on imported mobiles was previously decreased by 50% on April 1, 2023. The FBR’s Statutory Regulatory Orders (SROs), which were recently withdrawn, merely reduced the higher rates of regulatory duties; the initial notification for these duties is still in place.
Currently, while importing mobile phones, buyers must pay a fixed mobile charge and withholding tax. Additionally, the usual sales tax rate for imported mobile phones has gone up from 17 to 18 percent.
To read our blog on “In the first two months of FY23, mobile worth $102M were imported,” click here.
