The Federal Board of Revenue (FBR) has introduced a new sales tax policy effective from July 25, 2024, which will significantly impact mobile phone prices. According to the updated Sales Tax Act, 1990:
– A 25% sales tax will be applied to completely built-up (CBU) mobile phones valued over $500.
– Phones priced under $500 will be taxed at 18%.
– Locally assembled CBU phones, along with imports in completely knocked down (CKD) or semi-knocked down (SKD) forms, will also face an 18% tax.
Additionally, the new financial year’s budget proposes imposing a federal excise duty (FED) on imported mobile phones, raising the Pakistan Telecommunication Authority (PTA) tax, and increasing the General Sales Tax (GST) on these imports.
