Importing mobile phones or asking for relatives to fly them over has now become expensive. Now, individuals will have to pay Customs Duty and taxes.
There are, however, several conditions to make the policy easy on overseas Pakistanis who are flying in for short visits. According to the policy, each individual (Pakistani or overseas Pakistani) can carry up to 5 handsets per year.
Out of the 5, one will be free, whereas taxes and duties will be applicable on the rest. Furthermore, those handsets which have not been paid for will be blocked within 30 days. Those who have foreign SIMs with roaming on will also get cleared from paying these taxes.
This is applicable on handsets flowing into Pakistan after 1st December.
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Mobile Tax & Duties Breakdown
Imported phones will have the following taxes and duties applicable to them:
- Customs Duty
- Regulatory Duty
- Sales Tax
- Additional Sales Tax
- IT Duty
- Mobile Levy
- Provincial Tax
Customs DutyÂ
The fixed amount for Customs Duty is PKR 250.
Regulatory Duty
Mobile phones worth in-between $1-60 will be taxed with Rs.250. Handsets worth in between $61-130 will be taxed with 10% of the value. Whereas phone worth over $130 will be taxed with 20% of their value under Regulatory Duty.
| Value of Phone (USD) | Taxation |
| $1-60 | Rs. 250 |
| $61-130 | 10% of the value |
| $130+ | 20% of the value |
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Sales Tax
Sales tax is fixed at Rs. 1500 per handset.
Additional Sales Tax
Additional sales tax is fixed at 3% of the phone’s actual value.
IT Tax
The fixed amount for IT Tax is 9% of the phone’s value.
Mobile Levy
| Value of Phone (PKR) | Levy |
| Rs 10,000 to 40,000 | Rs 1000 |
| Rs 40,000 to 80,000 | Rs 3000 |
| Over Rs 80,000 | Rs 5000 |
Example
- Value of a phone declared by Customs is Value A
- Add 1% Insurance on Value A, this would become Value B
- Add 1% Landing charges on Value B, this would become Value C
- Now, this Value C is important because Customs will now Apply/calculate all Duty/Taxes on Value C, not Value A.
If Value A = $100, then its Value B will be $101. Its Value C would then be $102.01 (and not $100).
Now that the value of the phone has been determined- it will be converted from USD to PKR at Inter-Bank rates for that particular day.
Now that we have the phone’s value, the following formulas will be applied for taxes and duties:
- Value C + 10% or 20% Regulatory Duty = Value D
- Value D + Rs 250 fix Customs Duty = Value E
- Value E + 3% Additional Sales Tax = Value F
- Value F + Rs 1500 fix Sales Tax = Value G
- Value G + 9% or 6% Income Tax = Value H
- Value H + Rs 1000 or greater as Mobile Handset Levy = Value I
- Value I + Rs 1000 fix Sindh Stamp Duty = Value J
- Value C + 1.16% CESS Duty = Value K
Value J + Value K – Value C = ___ PKR. This is the final amount which is the total of Duty/Taxes that an individual will have to pay.
Taxation Per Phone
The following chart explains how much taxation will have to be paid according to the value of the handset.
| Value of Mobile | Taxation (PKR) |
| $50 | Rs 4,641 |
| $100 | Rs 6,367 |
| $150 | Rs 8,083 |
| $200 | Rs 13,116 |
| $250 | Rs 15,666 |
| $300 | Rs 20,216 |
| $350 | Rs 22,767 |
| $400 | Rs 25,317 |
| $450 | Rs 27,867 |
| $500 | Rs 30,417 |
| $550 | Rs 34,967 |
| $600 | Rs 37,517 |
| $650 | Rs 40,067 |
| $700 | Rs 42,618 |
| $800 | Rs 47,718 |
| $900 | Rs 52,818 |
| $1000 | Rs 57,918 |
| $1200 | Rs 68,119 |
| $1400 | Rs 78,319 |
| $1500 | Rs 83,420 |
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