Prices for imported mobile phones are expected to rise beginning July 1, 2024.
As duties and taxes on commercial mobile phone imports are increased in the upcoming budget (FY2024-25).
According to sources, the Federal Board of Revenue (FBR) has proposed imposing a federal excise duty (FED) on mobile phones.
As well as a gross assessment of FED on imported handsets, with a particular emphasis on increasing the PTA tax on luxury phones.
Next Finance Bill
Currently, imported mobile phones are subject to a General Sales Tax (GST) rate of up to 25%.
But the upcoming Finance Bill proposes raising this rate even higher.
This proposal also aims to support the federal government’s overall effort to increase tax revenue by at least Rs. 2 trillion over the next fiscal year.
Sales Tax Levied On CBUs
Tax is currently levied on CBUs upon importation or registration (IMEI number provided by CMOs).
It’s also levied on imports in CKD/SKD condition and the sale of locally manufactured mobile phones in CBU condition.
In the upcoming budget, it is proposed to increase duties and taxes on the import of cellular phones, CKD/SKD condition, and their parts.
Imported Mobile Phones
The private sector has proposed that the government abolish the rate of advance tax on telecom subscribers.
Completely because the majority of the subscriber base falls below the taxable limit and is affecting affordability.
To read our blog on “Pakistan mobile market imports are surprisingly surging 209%,” click here
