FBR assurance of reduction in import duty on mobile phones

ISLAMABAD: In the meeting of the Standing Committee on Finance of the National Assembly, important developments regarding the import taxes imposed on mobile phones have been revealed. In the meeting, FBR Chairman Rashid Mahmood Langriyal has assured reduction in duty.

The meeting was chaired by Chairman Committee Syed Naveed Qamar. In which the country’s auto policy, tax system on electric vehicles and mobile phones were reviewed in detail. Officials briefed on various tariff and duty rates.

Chairman FBR said that reduction of 20% regulatory duty imposed on imported mobile phones can be considered. There are chances of tax reduction especially on phones priced up to $200.

It was informed in the meeting that at present tax is being collected on mobile phones according to different categories. Low-cost phones are also taxed heavily, which is being revised.

According to the data, there is a 25 percent tax on phones costing up to $30. 36% tax is levied on phones priced between $31 and $100. Similarly, 40 percent tax is applicable on phones priced between $101 and $200.

It was further informed that phones priced between $201 and $350 are taxed at 38%, $351 to $500 at 40% and phones priced above $500 at 41%.

According to the authorities, the average effective tax rate is around 39.6%. As the price increases, so does the tax.

In the meeting, the members pointed out that there are a large number of non-PTA mobile phones in the country. There should be an easy way for consumers to pay taxes.

The committee also recommended that installment system be introduced for payment of mobile phone tax. This will provide convenience to the people.

Chairman Committee Syed Naveed Qamar directed that FBR and PTA jointly prepare a workable plan on installment system.