How Much Duty Will You Have to Pay on Imported Mobile Phones? Here is Complete Details

 

In a recent move the Federal Board of Revenue (FBR) has released a custom valuation of mobile phones. The mobile phones, on the basis of their brands, models and types, have been assigned custom values for the purpose of duty/tax clearance. Only the custom value paid phones, henceforth, shall be regularized as per the Pakistan Telecommunication Authority (PTA) guidelines.

A list of 186 mobile phones belonging to a range of different imported brands and categories has been issued by the Federal Board of Revenue for customs valuation and subsequent determination of duty and taxes. The highest custom valuation of $770 has been assigned to Samsung Galaxy Note-9 by the FBR. Announcing the FBR custom valuation of mobile phones, Minister for Information & Broadcasting, Fawad Chaudhry asserted that Pakistan imports mobile phones worth $2 billion annually and it is not feasible to not tax such a major chunk of imports. The Minister insisted that country needs to embrace the taxation culture.

As per the scheme being put in operation, low-end smartphones which cost about $50 will have a small tax value, however, the ones with a heavy price tag will be taxed by as much as 38 percent of their listed valuation at Customs.

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The new valuation, the FBR statement declares, has been issued to accommodate the regularization process of cell phones initiated by the Pakistan Telecommunication Authority (PTA). According to the new procedures introduced by the PTA, immunity given to register unauthorized phones ends on December 31, 2018. Only the mobile phones with duties and taxes paid for clearance shall be registered. Earlier, PTA had been discontinuing the services to unauthorized SIM/IMEI starting December 2018. However, only the mobile phones cleared by the customs authorities after payment of mobile valuation duty and taxes shall be allowed to operate. This is applicable for all the phones which have been imported to Pakistan without prior proper customs clearance: now they can be regularized and cleared from PTA after payment of the custom duties and taxes.

Dispelling the misinformation following the new development, Mr. Fawad Chaudhry, announced that the new move does not impose any new taxes on the overseas Pakistanis bringing their personal phones. They can bring the personal phones without paying taxes, however, for each additional phone they carry they shall have to pay the customs duty for each.

Value of Duties and Taxes

Mobile Levy

Value of phone in PKR Levy
10,000 to 40,000 Rs. 1000
40,000 to 80,000 Rs. 3000
Over 80,000 Rs. 5000

Regulatory Duty

Value of phone in US Dollars Taxation
$1 to $60 Rs. 250
$61 to $130 10% of value
Over $130 20% of value

Sales Tax

The amount for sales tax is fixed at Rs. 1500.

Customs Duty

The amount for customs duty is fixed at Rs. 250.

Additional Sales Tax

The additional sales tax is fixed at 3% of the phone’s value.

IT Tax

The IT tax is fixed at 9% of the phone’s value.

Provincial Tax

The provincial tax is applicable only for Punjab and it’s fixed at 0.9% of the phone’s value.

How Much Tax You’ll Pay Based on Phone Value

If you don’t want to swing out a calculator, we’ve compiled this list which will tell you exactly how much tax and duties you’ll pay depending on the cost of the phone.

Please keep in mind that these charges are calculated by assuming the value of the US Dollar is equivalent to Rs. 140.

Value of Mobile Taxation in PKR
$50 Rs. 4641
$100 Rs. 6367
$150 Rs. 8083
$200 Rs. 13,116
$250 Rs. 15,666
$300 Rs. 20,216
$350 Rs. 22,767
$400 Rs. 25,317
$450 Rs. 27,867
$500 Rs. 30,417
$550 Rs. 34,967
$600 Rs. 37,517
$650 Rs. 40,067
$700 Rs. 42,618
$800 Rs. 47,718
$900 Rs. 52,818
$1,000 Rs. 57, 918
$1,200 Rs. 68,119
$1,400 Rs. 78,319
$1,500 Rs. 83, 420
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