Mobile phone imports have become 86percent cheaper as the Federal Board Revenue has slashed the import duties. This reduction is however only for the phones that cost $100 or less.
The sales tax exemption on mobile phones that cost up to $100 has been decreased from Rs.1,320 to Rs.200. The revenue board is changing its tax laws with effect from the 28th of December 2019.
The mobile phones that cost less than $100 would be charged the withholding tax of Rs.200. People purchasing phones in this bracket were earlier asked to pay Rs.750 in duties.
The import volume of mobile phones in mid through the year 2019-20 was recorded at $391 million while the import for the same time span last year was $248 million, which means that the imports surged by 58percent.
For increasing the collection volume of the tax imposed on luxury import heavier duties were imposed last May.
Also Read: CNG Stations of Sindh to Remain Closed for 50 Hours
The Senate Standing Committee on IT presented his advice to the FBR to reduce the duties as they did blend well with the digitising image of Pakistan.
Back in the month of September, the revenue board suggested a reduction in the customs regulatory duties of the mobile phone imports for encouraging digitisation and for providing relief to the common man.
As per a notification by the FBR, this curb in the tax is anticipated to surge the import volume of mobiles in Pakistan.
In the steps towards digitizing Pakistan, the ministry of commerce and the IT ministry have collectively worked out a draft for the revised sales tax rates and regulatory duties on the import of the mobile devices, as per an FBR official.
The Withholding taxes and sales on phones that cost more than $100 remain unchanged for now and the revised regulatory duties on the import of phones at customs is in the making.
More Read: PM Khan Inaugurates First Shelter Home in Faisalabad
Research Snipers is currently covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More. Research Snipers has decade of experience in breaking technology news, covering latest trends in tech news, and recent developments.
