The Federal Board of Revenue (FBR) is currently conducting a comprehensive review of the duties and taxes structure related to the import of mobile phones, according to a budget maker who spoke to ProPakistani. The proposed changes are expected to have a negative impact on FBR’s revenue collection for the fiscal year 2023-24 (FY24).
A high-ranking FBR official stated that the tax policy for importing mobile phones has been completely revised for the upcoming budget. The FBR is likely to maintain an 18 percent sales tax rate on mobile phone imports and has also imposed a 25 percent sales tax on luxury items. The sales tax structure and withholding tax will remain unchanged in the upcoming budget. However, it is proposed to further reduce customs and regulatory duties on imported mobile phones starting from July 1, 2023.
As of April 1, 2023, a 50 percent reduction in regulatory duty (RD) was implemented for mobile phone imports. The withdrawal of FBR’s SROs (Statutory Regulatory Orders) from March 31 has eliminated the increased rates of RDs, but the original notification for RDs remains in effect.
Buyers are currently required to pay withholding tax and a fixed mobile levy on imported mobile phones. The standard rate of sales tax, applicable to mobile phone imports, has also been increased from 17 to 18 percent.
