The Federal Board of Revenue (FBR) has significantly increased taxes on high-end mobile phones through amendments to the Sales Tax Act, 1990 and the Federal Excise Act. The new tax regime aims to generate additional revenue for the government.
Key Changes in Mobile Phone Taxation
- Import Tax:
- A 25% sales tax will be levied on Completely Built-Up (CBU) mobile phones valued over $500.
- An 18% sales tax will apply to CBU mobile phones valued at or below $500.
- Local Manufacturing:
- An 18% sales tax will be imposed on locally manufactured CBU mobile phones.
- CKD/SKD Imports:
- An 18% sales tax will be levied on mobile phones imported in Completely Knocked Down (CKD) or Semi-Knocked Down (SKD) condition, regardless of value.
These changes are expected to lead to a substantial increase in the prices of high-end mobile phones in Pakistan.
Crackdown on Tax Fraud
In addition to the tax hikes, the FBR has introduced stricter measures to combat tax fraud. This includes establishing a Tax Fraud Investigation Wing and requiring businesses to integrate electronic invoicing systems. Penalties for tax fraud have also been increased.
