ISLAMABAD (Kashmir English): The Standing Committee of Finance of the National Assembly recommended a reduction in mobile phone taxes while the parliamentarians were reviewing duty collection and tax structure for mobile phones being imported and also manufactured locally in Pakistan.
The committee was informed by the tax officials that they will review this matter during the next fiscal year budget preparation.
The chairman of FBR, Mr. Rashid Mahmood Langrial, and Tax Policy Office members informed the committee regarding this meeting. According to the report, mobile phones imported worth more than 500 dollars have a tax of up to 76000 rupees, and the tax rate is 54 percent in total.
Those imported mobile phones whose prices lie between 700 and 750 dollars have a higher tax rate of 55 percent. It is reported that tax on imported mobile phones will be 54 percent, and tax on locally manufactured mobile phones will be 25 percent.
According to the committee, an 18 percent general sales tax GST was applicable on the sale of mobiles, along with concessional income tax and withholding tax, which reached Rs. 11,500 on high-priced handsets.
FBR officials said that it was not possible at this stage to lower the GST rate of 18 percent or the withholding tax rates. “We have to promote technology in our country; it is going to improve our economy,” he said. “When we impose sales tax then why should we levy income tax?”
