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'Mobile phone prices to go up with new import duties in Budget 2024-25'

12:38 PM | 10 Jun, 2024
'Mobile phone prices to go up with new import duties in Budget 2024-25'
Source: File Photo

ISLAMABAD – Pakistani government is considering all out options to increase revenue and now imported mobile phones are expected to increase starting July 1, 2024, due to increased duties and taxes on their commercial import.

Reports in local media claimed that Federal Board of Revenue (FBR) proposed implementing a federal excise duty (FED) on imported mobile phones. This includes a comprehensive assessment of FED on imported handsets, with a particular emphasis on raising the PTA tax on expensive phones.

As of now, imported mobile phones are subjected to General Sales Tax (GST) rate of up to 25 percent. However, the forthcoming Finance Bill proposes to increase this rate further. This initiative is part of the federal government's broader effort to boost tax revenue by at least Rs. 2 trillion in the next fiscal year.

Sales tax is currently applied to Completely Built Units (CBUs) at time of import or registration (IMEI number by CMOs). It also applies to imports in Completely Knocked Down (CKD) and Semi-Knocked Down (SKD) conditions and the supply of locally manufactured mobile phones in CBU condition.

The proposal further aims to increase duties and taxes on import of cellular phones, CKD/SKD conditions, and their parts in the forthcoming budget.

Despite government's rhetoric to increase taxes, private sector suggested that government should completely abolish the advance tax rate on telecom subscribers, as most subscribers fall below the taxable limit, which hampers the affordability of mobile services.

In its taxation proposals for 2024-25 budget, the Overseas Investors Chamber of Commerce and Industry (OICCI) recommended the government revamp the withholding tax regime to make tax claims and verification mechanisms more transparent with minimal operational difficulties.

The withholding tax rate was jacked up from 10 percent to 15 percent, and this increased tax rate impacts the affordability of mobile services.

Daily Pakistan Global Web Desk

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Currency Rates in Pakistan - Pak Rupee to US Dollar, Euro, Pound, Dirham, Riyal - 25 June 2024

Pakistani rupee rates against US Dollar and other currencies on June 25, 2024 (Tuesday) in open market.

USD to PKR Rate Today

US dollar was being quoted at 277.5 for buying and 280.65 for selling.

Euro's buying rate stands at 293.5 and selling rate is 297.2 while British Pound rate is 348.5 for buying, and 351.45 for selling.

UAE Dirham AED was at 75.05 and Saudi Riyal at 72.95.

Currency Rates in Pakistan

Source: Forex Association of Pakistan. (last update 09:00 AM)
Currency Symbol Buying Selling
US Dollar USD 277.5 280.65
Euro EUR 293.5 297.2
UK Pound Sterling GBP 348.5 351.45
U.A.E Dirham AED 75.05 75.85
Saudi Riyal SAR 72.95 73.85
Australian Dollar AUD 182.2 184
Bahrain Dinar BHD 740.58 748.58
Canadian Dollar CAD 203 205
China Yuan CNY 38.35 38.75
Danish Krone DKK 39.91 40.31
Hong Kong Dollar HKD 35.67 36.02
Indian Rupee INR 3.33 3.44
Japanese Yen JPY 1.9 1.98
Kuwaiti Dinar KWD 907.74 916.74
Malaysian Ringgit MYR 59.07 59.67
New Zealand Dollar NZD 170.38 172.38
Norwegians Krone NOK 26.38 26.68
Omani Riyal OMR 723.26 731.26
Qatari Riyal QAR 76.5 77.2
Singapore Dollar SGD 72.95 73.85
Swedish Korona SEK 26.5 26.8
Swiss Franc CHF 311.53 314.03
Thai Bhat THB 7.58 7.73

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