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FBR reduces sales tax on mobile phones

Web Desk by Web Desk
January 21, 2020
in News
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FBR reduces sales tax on mobile phones
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The Federal Board of Revenue (FBR) has lowered sales tax on mobile phones to support the digital economy.

“Ninth Schedule to the Sales Tax Act 1990 has been amended and sales tax on the mobile phones upto the value of 30 US dollars has been reduced from Rs130 to Rs100 and phones having value upto 100 US Dollars from Rs1320 to Rs200,” said FBR, while sharing Tax Laws (Second Amendment) Ordinance, 2019.

During the first five months of the current fiscal year, mobile phone imports into the country increased by 63.62 per cent compared to the corresponding period last year.

Recent developments may increase further demand for mobile phones in the country, after Pakistan imported mobile phones worth $498,466 million in July-November (2019-20) compared to imports of $304,651 million in July-November (2018-19), showing growth of 63.63 per cent, according to Pakistan Statistics Bureau (PBS) data.

FBR further claimed that the criteria for qualifying for a Tier 1 retailer were amended to raise the threshold of electricity consumption from Rs600,000 to Rs1200,000 in light of the higher electricity tariff rates.

In regards to people who are required to integrate with or have been integrated with the FBR, either do not get integrated or do not comply properly or tamper with the installed systems in such a way as to avoid correct production and sales reporting and recording, will face penalties / fines.

Tags: FBRmobile phonessales tax
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