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Tag: mobile phones

  • Pakistan spends Rs217 billion on import of mobile phones in FY20

    Pakistan spends Rs217 billion on import of mobile phones in FY20

    ISLAMABAD: Pakistan has spent Rs217 billion on import of mobile phones during fiscal year 2019/2020 amid slow economy and outbreak of coronavirus pandemic.

    The import of mobile phones was Rs217 billion during fiscal year 2019/2020 as compared with Rs102.75 billion in the preceding fiscal year, showing 81 percent growth, according to data released by Pakistan Bureau of Statistics (PBS).

    Market sources said that reduction in duty and taxes and restriction of registration with the Pakistan Telecommunication Authority (PTA) has increased the import of mobile phones through legal channels.

    The import of mobile phones in terms of US Dollars also increased to $1.4 billion during the fiscal year under review as compared with $755.55 million in the preceding fiscal year.

    Despite imposition of lockdown in the country to prevent coronavirus, the country imported mobile phones worth Rs38.2 billion in June 2020, which is 115 percent higher when compared with Rs17.78 billion in May 2020.

    The market sources said that due to lockdown the importance of digital economy had increased. They said that financial transactions were being done through mobile phones, which were the easiest way.

  • Pakistan spends Rs179 billion for mobile phone import

    Pakistan spends Rs179 billion for mobile phone import

    ISLAMABAD: Pakistan has spent over Rs179 billion for import of mobile phones during July – May 2019/2020, which is 90 percent higher than the same period of the last fiscal year.

    According to Pakistan Bureau of Statistics (PBS), the country imported mobile phones worth Rs179 billion during first eleven months of the current fiscal year, which was Rs93.78 billion in the corresponding period of the last fiscal year.

    Market sources said that reduction in duty and taxes and restriction of registration with the Pakistan Telecommunication Authority (PTA) has increased the import of mobile phones through legal channels.

    The import of mobile phones in terms of US Dollars also increased to $1.14 billion during the period under review as compared with $698 million in the corresponding period of the last fiscal year.

    Despite imposition of lockdown in the country to prevent coronavirus, the country imported mobile phones worth Rs17.78 billion in May 2020, which is 127 percent higher when compared with Rs7.83 billion in April 2020.

    The market sources said that due to lockdown the importance of digital economy had increased. They said that financial transactions were being done through mobile phones, which were the easiest way.

  • Pakistan imports mobile phones worth Rs18.2 billion in March

    Pakistan imports mobile phones worth Rs18.2 billion in March

    KARACHI: Pakistanis have spent Rs18.2 billion for import of mobile phones in March 2020 despite the reality of business halt after lockdown to contain coronavirus.

    According to data released by Pakistan Bureau of Statistics (PBS), the import of mobile phones was at Rs18.2 billion in March 2020 as compared with Rs16.13 billion worth mobile phones imported in February 2020, which is 12.72 percent higher.

    The import is 65 percent is higher in the month of March 2020 when compared with Rs11 billion in the same month of the last year.

    Industry sources explained that the rise in import of mobile phones was due to return of many Pakistanis living abroad due to spread of coronavirus.

    They said overall import during the month contracted due to several restriction after the outbreak of coronavirus.

    The overall import of mobile phone increased by 107.76 percent to Rs153 billion in July – March 2019/2020 as compared with Rs73.64 billion in the corresponding period of the last fiscal year.

    The unprecedented growth during the period was due to strict enforcement against smuggling of mobile phones. Besides, registration through a platform provided by Pakistan Telecom Authority (PTA) also encouraged the use of registered mobile phones in the country.

  • Tax collection from phone services jumps up 630 percent

    Tax collection from phone services jumps up 630 percent

    ISLAMABAD: The collection of withholding tax from phone subscribers registered a phenomenal increase of 630 percent to Rs27 billion during first half of the current fiscal year, according to data made available to PkRevenue.com

    The sources in Federal Board of Revenue (FBR) told that the restoration of withholding tax on phone usage by the Supreme Court of Pakistan (SBP) helped the tax authorities to generate substantial amount during the period under review.

    The data revealed that the FBR collected withholding tax to the tune of Rs27 billion during first six months (July – December) 2019/2020 as compared with Rs3.7 billion collection in the corresponding period of the last fiscal year.

    The FBR collects withholding tax on telephone usage under Section 236 of Income Tax Ordinance, 2001 from telephone subscribers and internet.

    The tax rate is zero percent on monthly bill up to Rs1,000. However the bill exceeding Rs1,000 shall liable to tax rate at 10 percent.

    In case subscriber of internet, mobile telephone and pre-paid internet or telephone card the tax rate shall be 12.5 percent of the amount of bill or sales price of internet pre-paid card or prepaid telephone card or sale of units through any electronic medium or whatever form.

    The phone companies preparing bills or selling prepaid cards are responsible to collect withholding tax on behalf of the FBR from telephone subscribers, internet subscribers, purchaser of internet prepaid cards.

    The withholding tax collected from phone usage is adjustable against the taxpayers’ liability.

    The FBR incurred a loss of Rs55 billion in 2018/2019 due to suspension of withholding tax on telecommunication services by the Supreme Court of Pakistan.

  • Withholding tax exemption for cellular consumers under consideration

    Withholding tax exemption for cellular consumers under consideration

    ISLAMABAD: The Committee on Issues of Cellular Mobile Operators has agreed to prepare proposals for withdrawal of withholding tax as a relief for cellular consumers in the wake of coronavirus outbreak.

    First meeting of the Committee on Issues of Cellular Mobile Operators was held here on Monday. Federal Secretary Ministry of IT Shoaib Ahmad Siddiqui chaired the meeting.

    It was decided that proposals shall be prepared for withdrawal of withholding tax for 90 days as a relief for cellular consumers during this situation in addition to the tax harmonization between Federation and provinces regarding FED/GST.

    In line with directions of the Prime Minister, Committee on Issues of Cellular Mobile Operators was formed to evaluate the issues of Cellular Mobile Operators and formulate recommendations for onward submission to the Prime Minister’s Office including settlement of license renewal matters with cellular mobile operators that shall help the government in valuable income generation in the current crisis situation.

    Matters related to, additional spectrum allocation in Pakistan and AJK & GB, mutually agreed license renewal frameworks, tax rationalization, Right of Way (RoW) and reduction of NADRA Biometric Verification Charges were discussed during the meeting.

    During the meeting, NADRA was requested to reduce charges of biometric verification of SIM especially in view of this situation resulted after COVID-19 in the country.

    Representative of NADRA sought sometime to discuss the matter with its Chairman and Board. The Chair directed NADRA to give its version in this regard next week.

    Ministry of Industries and Production agreed to the proposal that Telecom sector should be given functional Industry status.

    The telecom operators shared serious interest in additional spectrum auction in Pakistan and AJK & GB to facilitate quality mobile broadband services necessary assist people especially students and professional to work from home and comply to COVID_19 related advisory.

    The Chair emphasised the need for urgent availability of required spectrum in Pakistan and AJK & GB and that Ministry of Kashmir Affairs & Northern Areas has already been sensitized to take lead on the matter for their respective areas in line with applicable laws.

    The Chair directed PTA and telecom industry to work together to firm up proposals regarding data pricing to avoid abuse of service.

    The meeting was attended by senior officers of the Ministry of IT, Cabinet Division, Ministry Finance, Ministry of Industries & Production, Federal Board of Revenue, representatives from PTA, NADRA and Cellular Mobile Operators.

  • MCC Preventive Peshawar announces auction of vehicles, mobile phones on March 09

    MCC Preventive Peshawar announces auction of vehicles, mobile phones on March 09

    ISLAMABAD: The Model Customs Collectorate (MCC) Preventive Peshawar has announced auction of vehicles and mobile phones to be held on March 09, 2020.

    Following vehicles to be auctioned at State Warehouse Peshawar:

    Mercedes Benz (Bullet Proof) Model 1982, Chassis No. WDB-12603312037551

    Toyota Hilux Pick Up Model 2007, Chassis No. MROCS12G400043443

    Toyota Land Cruiser Model 2004, Chassis No. LTERB71J800020686

    Toyota Camry Car Model 2014 (as per Website), Chassis No. 6T1BF3FK-40X056581

    Toyota Land Cruiser 1993, Chassis No. KZJ78-0007642

    Toyota Hilux Surf Model 1996 (as per Website), Chassis No. RZN185-0009061

    Hino Truck Model 2001 (as per documents), Chassis No. FB113K-159995

    Honda Heavy Bike Model 1993-94 (as per documents), Chassis No. NC31-1391982

    Hino truck (06-wheeler) Model 1992 (as per Website), Chassis No. FD3HLA-30343

    Toyota Fielder “X” Car Model 2003 (as per Website), Chassis No. NZE121-0270224

    Following vehicles to be auctioned at State warehouse Mardan

    Daihatsu Mira Car (Avy) Model 2003 (as per Website), Chassis No. L250S-1014196

    Suzuki Mini Jeep (Jimney) Model 1991 (as per Website), Chassis No. JA11-155470

    Daihatsu Rush Jeep Model 2007 (as per Website), Chassis No. J200E-0014339

    Hino Truck Model 1986 (as per Website), Chassis No. FD171B-20894

    Toyota Hiace Van Model 2003 (as per Website), Chassis No. TRH112-0008465

    Toyota Fielder “X” Car Model 2005 (as per Website), Chassis No. NZE121-0335174

    Toyota Fielder “X” Car Model 2005 (as per Website), Chassis No. NZE121-3325647

    Following vehicle to be auctioned at State Warehouse Abottabad

    Toyota Mark-X Car Model 2005 (as per Website), Chassis No. GRX120-0009539

    Following vehicles to be auctioned at State Warehouse Frontier Corps

    Daewoo Car Model 1992, Chassis No. KLATF19TINB-522281

    Mark-1 Motor Car Model Nil, Chassis No. LA3VS-216474

    Motor Car Model 1978, Chassis No. M-430-300918

    Toyota Corolla Car Model 2003 (as per Website), Chassis No. NZE120-6005014

    Toyota Corolla Saloon Car Model 2004 (as per Website), Chassis No. ZZE121-9010983

    Toyota Corolla Car Model 2001 (as per Website), Chassis No. CE100-9020816

    Toyota Corolla Car Model 2000 (as per Website), Chassis No.CE100-9013329

    Toyota Corolla Car Model 1993 (as per Website), Chassis No. CE100-3029431

    Toyota Corolla Car Model 1991 (as per Website), Chassis No. EE90-5665542

    Following mobile phones will be auctioned:

    F/o SAMSUNG GALAXY CORE 2 DUOS =22-Nos & SAMSUNG GALAXY J1 =33-Nos Total 55-Nos.

    F/o SAMSUNG GALAXY J1 =23-Nos & SAMSUNG GALAXY CORE 2 DUOS =30-Nos Total 53-Nos.

    F/o Q 3310 Mini Mobile Phones =1987-Nos.

    F/o SAMSUNG MOBILE PHONE (J56SM-J510-F/DS) =45-Nos

    F/o Voice Mobile Phone V-105 =580-Nos, V-840 60-Nos & V-2426 160-Nos Total =800-Nos.

    F/o Q MOBILE (L9) =174-Nos

    F/o Nokia 1134 Mobile Phones =119-Nos, 1110 116-Nos, 1035 80-Nos, 944 45-Nos, 1136 62-Nos & 1133 59-Nos Total =481-Nos.

    F/o Samsung Galaxy Alpha Mobile Phones =04-Nos & IPhone GSM=01-No Total =05-Nos.

    F/o Samsung G570F =18-Nos, Samsung G610F 01-No, Samsung G313 01-No Motorolla XT1030 01-No & HTC X200 01-No Total =22-Nos.

    F/o Samsung Galaxy Alpha SM-G580 F Mobile Phones =02-Nos

    F/o Samsung Galaxy Core 2 Duos SM-G355H =112-Nos, Samsung Galaxy Note 4 01-No, Samsung Iphone =01 No, Samsung Galaxy Tab 5 02-Nos & Tab 4 01-No Total =117-Nos.

    F/o Q Mobile Commando 1 =99-Nos.

    F/o Samsung Galaxy J5 23-Nos Galaxy J2 25-Nos & Samsung A3 (6) 16-Nos Total =64-Nos.

    F/oQ Mobile Phone Assorted Model/Brands = Total =2150-Nos

    F/o Gamma M2 Mobile Phone =501-Nos.

  • Mobile phone import climbs up by 79.46% in seven months

    Mobile phone import climbs up by 79.46% in seven months

    KARACHI: The import of mobile phones has surged by 79.46 percent during first seven months (July – January) of current fiscal year owing to reduction in tax rate by the government to promote digital economy.

    The import of mobile phones increased to $760.58 million during first seven months of current fiscal year as compared with $423.82 million in the corresponding months of the last fiscal year, according to import data released by Pakistan Bureau of Statistics (PBS).

    The government announced Tax Laws (Second Amendment) Ordinance, 2019 on December 28, 2019 through presidential order.

    Prior to the promulgation of the Tax Laws (Second Amendment) Ordinance,2019 the rate of withholding income tax on the import of mobile phones was Rs.730 in case of a mobile phones having value exceeding 30 UD dollars and up to 100 US Dollars.

    In order to complement the efforts of the government towards promotion of financial inclusion, e-commerce etc, income tax at the import stage in respect of mobile phones having value exceeding 30US dollars and up to 100US dollars has been reduced from Rs.730 to Rs.100 per mobile phone.

  • Import of mobile phones surges by 106% to Rs96.33 billion in first half

    Import of mobile phones surges by 106% to Rs96.33 billion in first half

    KARACHI: Pakistan has imported mobile phones worth Rs96.33 billion, showing an increase of 106 percent during first half (July – December) of 2019/2020.

    According to data released by Pakistan Bureau of Statistics (PBS), the import of mobile phones increased to Rs96.33 billion during first half of current fiscal year as compared with Rs46.82 billion in the same period of the last fiscal year.

    The rise in imported mobile phones was due to sharp decline in Pak Rupee during the period.

    According to State Bank of Pakistan (SBP) the exchange rate in December 2019 was Rs154.92 to the dollar as against the exchange rate of Rs138.47 in December 2018.

    In terms of US dollar the growth in imported mobile phones is still significant. The country spent $616.14 million during first half of current fiscal year as compared with $364.04 million in the corresponding period of the last fiscal year, showing growth of 69 percent.

    Despite this growth, the government reduced withholding income tax and sales tax on imported mobile phone.

    Through Tax Laws (Second Amendment) Ordinance, 2019 the government reduced sales tax and withholding income tax on import of mobile phones. The FBR attributed the reduction to promote digital economy in the country.

  • Committee working on providing protection to smart phone manufacturers: FBR

    Committee working on providing protection to smart phone manufacturers: FBR

    In a significant move towards fostering the digital landscape and supporting local smartphone manufacturing, the Federal Board of Revenue (FBR) announced on Thursday a drastic reduction in taxes on imported smartphones.

    (more…)
  • Tax Amendment Ordinance: revised sales tax rates on imported mobile phones

    Tax Amendment Ordinance: revised sales tax rates on imported mobile phones

    ISLAMABAD: The government has massively reduced sales tax on imported mobile phone valuing up to $100 to Rs200 from Rs1,320 through amendment to Sales Tax Act, 1990 through Tax Laws (Second Amendment) Ordinance, 2019.

    The FBR notified the revised rates of sales tax on imported mobile phones. The amendment has been made to Ninth Schedule of the Sales Tax Act, 1990.

    The updated NINTH SCHEDULE of the Sales Tax Act, 1990 to prescribe sales tax rates on mobile phones.

    The Table:

    S.No.Description/ Specification of goodsSales Tax on import or local supplySales tax chargeable at the time of registration (IMEI number by CMOs)Sales tax on supply (payable at the time of supply by CMOs)
    1.Subscriber Identification

     

    Module (SIM) Cards

    		  Rs250
    2Cellular mobile phones or satellite phones to be charged on the basis of import value per set, or equivalent value in rupees in case of supply by the manufacturer, at the rate as indicated against each category:–

     

     

    		   
     A. Not exceeding US$ 30

     

     

    		Rs130Rs130 
     B. Exceeding US$ 30 but not exceeding US$ 100Rs200Rs200 
     C. Exceeding US$ 100 but not exceeding US$ 200Rs1,680Rs1,680 
     D. Exceeding US$ 200 but not exceeding US$ 350Rs1,740Rs1,740 
     E. Exceeding US$ 350 but not exceeding US$ 500Rs5,400Rs5,400 
     F. Exceeding US$ 500Rs9,270Rs9,270 

    LIABILITY, PROCEDURE AND CONDITIONS

    (i) In case of the goods specified against S.No 1of the Table, the liability to charge, collect and pay tax shall be on the Cellular Mobile Operator (CMO) at the time of supply. In case of the goods specified against S.No 2, the liability to pay sales tax at the time of import shall be on the importer, and the liability to charge, collect and pay sales tax payable on supplies shall be on the Cellular Mobile Operator at the time of registering International Mobile Equipment Identity (IMEI) number in his system.

    (ii) The Cellular Mobile Operators shall, if not already registered, obtain registration under the Sales Tax Act, 1990.

    (iii) No IMEI shall be registered in his system by a Cellular mobile Operator without charging and collecting the sales tax as specified in the Table.
    (iv) The Cellular Mobile Operator shall deposit the sales tax so collected through his monthly tax return in the manner prescribed in section 26 of the Sales Tax Act, 1990, and rules made thereunder.

    (v) The Cellular Mobile Operator shall maintain proper records of all IMEI numbers registered for a period of six years, and such records shall be produced for inspection, audit or verification, as and when required, by an authorized officer of Inland Revenue.

    (vi) The Pakistan Telecommunication Authority shall provide data regarding IMEI numbers registered with other Cellular Mobile Operators to prevent double taxation on the same IMEI number in case of switching by a subscriber from one operator to another, and to provide data regarding registration of IMEI numbers to the Board on monthly basis.

    (via) The sales tax as indicated in column (3) of the Table above shall be paid by the importer, in case of imports and by the manufacturer, in case of locally manufactured cellular mobile phones.

    (vii) No adjustment of input tax shall be admissible to the Cellular Mobile Operator or any purchaser of cellular mobile phone against the sales tax charged and paid in terms of this Schedule.

    (viii) The tax specified in column (4) of the Table shall be charged, collected and paid with effect from such date as may be specified by the Board and the sales tax specified in column(3) shall stand withdrawn from the date so specified.

    The FBR said that notwithstanding anything contained in any other law for the time being in force, the levy, collection and payment of sales tax under Notification No. S.R.O. 460(I)/2013, dated the 30th May, 2013, shall be deemed to always have been lawfully and validly, levied, collected and paid.