In a bid to encourage local cellphone manufacturing, the federal government has increased taxes and regulatory duty on import of mobile phones by up to 240%, depending on the value of the smartphone.
The new taxes and regulatory duty on mobile phones came into effect on Thursday, according to a notification issued by the Federal Board of Revenue (FBR).
These steps have been taken at a time when cellphones are in high demand due to online classes being taken by students across the country. However, the tax authorities’ rationale behind the increase in regulatory duties is to encourage local production of cellphones.
It is pertinent to mention that the country imported $1.9 billion worth of smartphones, an increase of 63%, during the period of July to May of the last fiscal year.
The regulatory duty on the import of mobile phones has been increased in the range of 32% to 240%, depending on the value of the imported mobile phone.
Taxes / Regulatory Duty on Mobile Phones
Mobile Phone Value | Taxes/Regulatory Duty | Increase |
|---|---|---|
$1 – $30 | Rs. 300 per set | Rs. 132 or 82% |
$31 – $100 | Rs. 3,000 per set | Rs. 1,380 or 85% |
$101 – $200 | Rs. 7,500 per set | Rs. 5,070 or $208% |
$201 – $350 | Rs. 11,000 per set | Rs. 7,760 or 240% |
$351 – $500 | Rs. 15,000 per set | Rs. 5,500 or 59% |
Above $500 | Rs. 22,000 per set | Rs. 5,350 or 32% |
These are the new taxes and regulatory duty on the import of mobile phones. Let us know what you think of this government decision in the comments below.
Read more: Govt Announces Tax on Mobile Calls Longer Than 5 Minutes.
Tax decreased on phones above 500 $ ?
So from 32520 to 22000 for above 500$ ?