The Federal Board of Revenue (FBR) has launched a new sales tax policy effective July 25, 2024, which is expected to notably affect mobile phone prices.
According to the revised Sales Tax Act of 1990, a 25% sales tax will apply to fully assembled (CBU) mobile phones priced over $500, while those under $500 will be taxed at 18%.
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Locally assembled CBU phones, along with imports in completely knocked down (CKD) or semi-knocked down (SKD) forms, will also be taxed at 18%.
The upcoming budget for the financial year proposes introducing a federal excise duty (FED) on imported mobile phones, increasing the Pakistan Telecommunication Authority (PTA) tax, and raising the General Sales Tax (GST) on these imports.
