The Federal Board of Revenue (FBR) has implemented changes in the valuation of mobile phones for determining taxes and duties, impacting both used/refurbished phones brought in by overseas Pakistanis and new phones imported by commercial entities, reported Business Recorder.
For used phones, the depreciation rate has increased from 30% to 60% for duties and taxes assessment, providing relief to international passengers bringing in phones up to five years old. However, commercial importers of new phones will face higher duties and taxes based on elevated customs values.
The new valuation ruling, number 1834 of 2023, adopts a progressive taxation policy, favoring individuals bringing in older phones for personal use. This policy aims to minimize under-invoicing, particularly in the case of branded mobile phones. The Federal Tax Ombudsman (FTO) directed the Federal Board of Revenue (FBR) to apply appropriate depreciated values for used phones, considering physical condition and model, to prevent unjustified overcharging.
Under the ruling, used/refurbished mobile phones imported by genuine passengers will be assessed based on tabulated values that account for depreciation. For brands and models not listed in the annexure but imported in commercial quantities, clearance Collectorates are instructed to assess them under Section 81 of the Customs Act, 1969, and refer to the Directorate for final value determination.
This measure aims to provide clarity and uniformity in valuation methods, discouraging misdeclaration. The overall intention is to balance the interests of overseas Pakistanis and commercial importers while ensuring fair and consistent valuation practices for mobile phones entering the country.
