Confused about taxes on imported phones? Here’s what you’re paying…

ISLAMABAD: The government has released a detailed breakdown of taxes and duties applicable on new and used mobile phones imported into Pakistan, outlining how charges vary according to a device’s value.

Briefing the National Assembly’s Standing Committee on Finance, the Federal Board of Revenue (FBR) said that customs duty, mobile levy, regulatory duty, sales tax and withholding tax are imposed at different slabs based on the assessed price of each phone. The value is determined through “valuation ruling,” and if a model has no existing valuation, its price is calculated using import data from the previous 90 days.

According to the FBR, mobile phones valued up to $30 face a Rs100 mobile levy, Rs 300 regulatory duty, 18 per cent sales tax and Rs70 withholding tax.

Phones priced between $30 and $100 are charged a Rs 200 mobile levy, Rs 3,000 regulatory duty, 18 per cent sales tax and Rs 930 withholding tax.

For devices in the $100-$200 range, the applicable taxes include a Rs 600 mobile levy, Rs 7,500 regulatory duty, 18 per cent sales tax and Rs 970 withholding tax.

Phones worth $200-$350 are subject to a Rs 1,800 mobile levy, Rs 11,000 regulatory duty, 18 per cent sales tax and Rs 5,000 withholding tax.

Devices priced between $350 and $500 are charged a Rs 4,000 mobile levy, Rs 15,000 regulatory duty, 18 per cent sales tax and Rs 5,000 withholding tax.

The highest tax slab applies to mobile phones costing above $500. These devices face a Rs 8,000 mobile levy, which increases to Rs 16,000 for phones priced over $700, along with a Rs 22,000 regulatory duty, 25 per cent sales tax and Rs 11,500 withholding tax.

The FBR said the tiered structure is aimed at regulating imports and ensuring proper documentation of high-end devices entering the country.