Pakistan’s Finance Minister, Ishaq Dar, presented the budget for the fiscal year 2023-24 on Friday, which includes new tax proposals amounting to over Rs200 billion. However, the coalition government has decided not to make any changes to the taxes and duties imposed on locally manufactured and imported mobile phones. Surprisingly, the prices for locally assembled and imported mobiles will remain the same, contrary to earlier reports that suggested a significant increase in taxes on mobile phones.
For those interested in importing a mobile phone, the following taxes must be paid:
- Provincial Tax: 0.9%
- IT Duty: 9%
Regulatory Duty:
The regulatory duty is determined based on the value of the mobile phone. The duty rates are as follows:
- For mobile phones valued between $1 and $30, a regulatory duty of Rs. 180 is applicable.
- For mobile phones valued between $30 and $100, a regulatory duty of Rs. 1,800 is applicable.
- For mobile phones valued between $100 and $200, a regulatory duty of Rs. 2,700 is applicable.
- For mobile phones valued between $200 and $350, a regulatory duty of Rs. 3,600 is applicable.
- For mobile phones valued between $350 and $500, a regulatory duty of Rs. 10,500 is applicable.
- For mobile phones valued at $500 and above, a regulatory duty of Rs. 18,500 is applicable.
Sales Tax:
- The sales tax rates for different value ranges are as follows:
- For mobile phones valued between $1 and $30, a sales tax of Rs. 150 is applicable.
- For mobile phones valued between $30 and $100, a sales tax of Rs. 1,470 is applicable.
- For mobile phones valued between $100 and $200, a sales tax of Rs. 1,870 is applicable.
- For mobile phones valued between $200 and $350, a sales tax of Rs. 1,930 is applicable.
- For mobile phones valued between $350 and $500, a sales tax of Rs. 6,000 is applicable.
- For mobile phones valued at $500 and above, a sales tax of Rs. 10,300 is applicable.
Withholding Tax:
The withholding tax rates for different value ranges are as follows:
- For mobile phones valued between $1 and $30, a withholding tax of Rs. 70 is applicable.
- For mobile phones valued between $30 and $100, the specific rate is missing from the information provided.
- For mobile phones valued between $100 and $200, a withholding tax of Rs. 930 is applicable.
- For mobile phones valued between $200 and $350, a withholding tax of Rs. 970 is applicable.
- For mobile phones valued between $350 and $500, a withholding tax of Rs. 3,000 is applicable.
- For mobile phones valued at $500 and above, a withholding tax of Rs. 5,200 is applicable.
Mobile Levy:
The mobile levy charges based on the value of the phone are as follows:
- For phones valued between Rs. 10,000 and Rs. 40,000, a mobile levy of Rs. 1,000 is applicable.
- For phones valued between Rs. 40,000 and Rs. 80,000, a mobile levy of Rs. 3,000 is applicable.
- For phones valued over Rs. 80,000, a mobile levy of Rs. 5,000 is applicable.
This budget announcement comes as a surprise to many who were expecting an increase in taxes on mobile phones. The decision to keep the prices steady for locally assembled and imported mobiles may be seen as a positive step for consumers and the mobile phone industry. However, it remains to be seen how this will impact government revenue and the overall economy in the long run.
The budget’s focus on maintaining tax rates for mobile phones could potentially encourage more people to purchase and import mobile devices. This may lead to increased accessibility to advanced technology and improved connectivity for individuals across the country.
Related Article: Pakistan Maintain Taxes on Smartphones in Budget 2023-24
It is important to note that while the budget aims to generate additional revenue through new tax proposals, the impact on the mobile phone industry and consumers’ purchasing decisions remains to be seen. The government’s decision to maintain tax rates on mobile phones indicates a desire to strike a balance between revenue generation and fostering a favorable business environment.
The budget announcement comes at a crucial time when Pakistan’s economy is recovering from the challenges posed by the COVID-19 pandemic. The government’s fiscal policies and tax measures will play a vital role in determining the country’s economic trajectory in the coming years.
Conclusion
Pakistan’s Finance Minister Ishaq Dar unveiled the budget for the fiscal year 2023-24, which includes new tax proposals. However, the government has decided not to make any changes to taxes and duties on locally manufactured and imported mobile phones, keeping the prices unchanged. This surprise move aims to maintain stability in the mobile phone market while generating revenue through other avenues. The impact of these measures on the economy and the mobile phone industry will be closely monitored as the fiscal year progresses.
