The Federal Board of Revenue has explained how taxes work on imported mobile phones in Pakistan, where the total charges will accordingly depend on the device's value. This comes as more Pakistanis rely on smartphones for daily communication, work, and entertainment.
The authorities informed the National Assembly's Standing Committee on Finance that cellphones are burdened with four kinds of taxes: mobile levy, regulatory duty, sales tax, and withholding tax.
FBR tax breakdown by phone value
The valuation of each phone is determined with the help of a valuation ruling or, in its absence, through import data available for the last 90 days.
For devices up to $30, the duties and taxes that will be applied include Rs100 mobile levy, Rs300 regulatory duty, 18% sales tax and Rs70 withholding tax.
For phones between $30 and $100, a Rs200 mobile levy, a Rs3,000 regulatory duty, an 18% sales tax and Rs930 withholding tax will be levied.
Handsets priced between $100 and $200 have Rs600 mobile levy, Rs7,500 regulatory duty, 8% sales tax, and Rs970 withholding tax.
Devices ranging between $200 and $350 have attracted Rs1,800 mobile levy, an Rs11,000 regulatory duty, 18% sales tax, and Rs5,000 withholding tax.
The handsets between $350 and $500 have Rs4,000 mobile levy, Rs15,000 regulatory duty, an 18% sales tax, and Rs5,000 withholding tax.
For higher-end devices, phones priced above $500 are charged Rs8,000 mobile levy, while handsets over $700 face an Rs16,000 mobile levy, an Rs22,000 regulatory duty, a 25% sales tax, and Rs11,500 withholding tax.
The FBR emphasised that these taxes ensure fair revenue collection while maintaining a transparent system for smartphone imports in Pakistan. Consumers and importers are advised to check the applicable duties before purchasing or importing devices to avoid delays at customs.