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Import duty increased on mobile phones

Import duty increased on mobile phones
January 18, 2019
ISLAMABAD (92 News) – The government of Pakistan on Friday increased the import duty on mobile phones 15 percent to 44-52 per cent. According to the Karachi Electronic Dealers Association (EDA) president Muhammad Rizwan, the duties, general sales tax (GST), levy, and income tax rates on the imports of mobile phones have been revised upwards. In addition, a condition of Type Approval has also been implemented on the import of used mobile phones. In this regard, KEDA president said he believes the latest decision by the government likely to hike up the prices of mobile phones by as much as Rs20,000.
Overseas Pakistanis will have to pay tax on extra mobile phones
Information Minister Fawad Chaudhry has said that overseas Pakistanis can bring mobile phones to the country and tax will only be imposed on additional mobile phones. In a tweet questioning the government’s decision to ban overseas Pakistanis from carrying cellphones to the country, Fawad Chaudhry said that the country is importing mobile phones worth US$2 billion. “If we do not impose taxes on this then how will we run?” The minister said that the tax on mobile phones worth less than $60 is almost negligible and on expensive phones there’s a 38 percent duty. “This is the most appropriate taxation. We will have to adopt the tax culture,” he added. Earlier, Minister of State for Finance, Revenue and Economic Affairs Hammad Azhar stated that overseas Pakistanis can carry only one phone in a year without having to pay customs duty. He said that overseas Pakistanis can bring a maximum of five phones as per personal baggage rules; however, they will have to pay duty on the four extra phones.
Why the New Import Duties?
According to the FBR, the RDs have been an effective tool in maintaining the stability of the current account position, competitiveness of the domestic manufacturing sector and promoting import substitution. To this end, the RD regime is being broadened to include additional luxury/non-essential items. It is also the desire of the government to introduce fairness in its fiscal measures, especially with regard to items where both the rich and the poor are treated alike.