Assurance of reduction in regulatory duty on imported mobile phones

FBR Chairman Rashid Mahmood Langrial has assured the National Assembly Standing Committee on Finance of a 20 percent reduction in regulatory duty imposed on imported mobile phones.

The meeting was chaired by Committee Chairman Syed Naveed Qamar. The FBR Chairman said that the possibility of reducing tax on mobile phones worth up to $200 can be reviewed.

FBR officials briefed the committee on the current tax rates on mobile phones. According to them:

• 25 percent tax on phones worth up to $30
• 36 percent on phones worth $31 to $100
• 40 percent on phones worth $101 to $200
• 38 percent on phones worth $201 to $350
• 40 percent on phones worth $351 to $500
• 41 percent tax on phones worth more than $500

The committee members, citing the millions of non-PTA phones available in the market, demanded the introduction of an installment system for paying taxes on mobile phones.

The chairman of the committee directed the FBR and PTA to jointly present a workable plan for the installment system.

Committee member Hina Rabbani Khar raised questions regarding taxes on mobile phones, while Javed Hanif Khan said that the parliament is not bound by anything and can clearly give its opinion if it does not agree.

The chairman of the FBR said that Rs 37 billion in taxes are collected annually from imported mobile phones, while Rs 21 billion in taxes are collected from Apple phones alone.