Old or refurbished mobile phones are now eligible for a 60% depreciation for arriving international passengers, particularly Pakistanis living abroad, FBR.
The new value regulation would not grant any concessions to commercial importers of new mobile phones.
FBR Cut Taxes on Mobile Phones Bring by Overseas Pakistanis
Pakistanis living abroad have made easier by the Directorate of Valuation Karachi’s new valuation ruling number 1834 of 2023.
New mobile phone importers, on the other hand, would have to pay taxes and duties on significantly higher customs values.
The new decision includes a number of new models to aid in the assessment of duties and taxes.
Pakistanis living abroad would receive some respite from the verdict, but commercial importers have not received any advantages.
According to the recent order, reconditioned or used mobile phones that are imported by legitimate passengers will also be evaluated based on the customs values provided, since the aforementioned tabulated values include an allowance for depreciation.
The ruling further stated that clearance collectorates are advised to evaluate brands and models under Section 81 of the Customs Act, 1969 for imports in commercial quantities that are not included in the enclosed annexure.
They should then forward a reference to the Directorate for the ultimate determination of their values.
Due to higher depreciation rates, the sources claimed that Pakistanis living abroad will profit from the decision.
For phones brought by incoming overseas passengers up to five years old, the depreciation has increased by up to 60%.
The new decision would not, however, provide any respite for business importers.
Imported mobile phone models would be more expensive than those with fewer years on them.
The strategy would reduce the margin of under-invoicing for both new and current branded mobile phone models.
To read our blog on “FBR amends customs values on import of toffees and candies,” click here.