, the government plans to introduce measures that would result in lower taxes for consumers. ){kind=link}
The Federal Board of Revenue (FBR) is currently conducting a comprehensive review of the duties and taxes imposed on imported mobile phones. This action was much needed because of the continuously rising prices of mobile phones due to nationwide inflation. Normal phones now range from 50,000 to 80,000pkr and luxury phones start from 300,000 pkr and only go up. But fortunately, in the upcoming fiscal year 2023-24 (FY24), the government plans to introduce measures that would result in lower taxes for consumers.
Details About Taxes
According to FBR, the tax policy for mobile phone imports will undergo significant revisions in the upcoming budget. While the sales tax rate of 18 percent will stay the same, a 25 percent sales tax will be imposed on luxury items. The sales tax structure and withholding tax will not be affected. However, there are plans to further reduce customs and regulatory duties on imported mobile phones starting from July 1, 2023.
Earlier, on April 1, 2023, the regulatory duty on mobile phone imports was reduced by 50 percent. The recent withdrawal of FBR’s Statutory Regulatory Orders (SROs) only eliminated the increased rates of regulatory duties, while the original notification for these duties remains in effect. Currently, buyers are required to pay withholding tax and a fixed mobile levy when importing mobile phones. Additionally, the standard rate of sales tax has been increased from 17 to 18 percent for mobile phone imports.
Will this make things better for businesses and the general public? Let us know in the comments below.
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