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Tag: mobile phones

  • 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.

  • Customs announces auction of mobile phones in huge quantity

    Customs announces auction of mobile phones in huge quantity

    ISLAMABAD: Model Customs Collectorate (MCC) Islamabad has announced auction of huge quantity of mobile phones to be held on December 24, 2019 at the state warehouse of the collectorate.

    Following is the list of mobile phones to be presented for auction by the collectorate:

    01. Q-Mobile Model K-650: 600 pieces

    02. Nokia 1202: 20 pieces

    03. Nokia 101: 20 pieces

    04. Nokia 105: 30 pieces

    05. Nokia 1280: 29 pieces

    06. Nokia 1616: 17 pieces

    07. Nokia 108: 40 pieces

    08. Nokia 3310: 50 pieces

    09. Vego Tel Classis I-10: 70 pieces

    10. Super Jamboo 1700: 49 pieces

    11. Vego Tel I 650: 20 pieces

    12. Kechadda K 116 Plus: 10 pieces

    13. Q-Mobile IE 4: 70 pieces

    14. Q-Mobile SP 3000 PRO: 50 pieces

    15. Q-Mobile Power 500 Music: 39 pieces

    16. Q-Mobile XL 100 Music: 13 pieces

    17. X-100 (i): 40 pieces

    18. Max X-7: 20 pieces

    19. KV-K2: 17 pieces

    20. KV-K400: 01 piece

    21. KV-K300: 01 piece

    22. KV-K200: 01 piece

    23. Mobile Phones: 25 pieces

    24. Q E-4: 50 pieces

    25. Q X-5300: 23 pieces

    26. Q Super Star Music: 22 pieces

    27. Q J-55: 03 pieces

    28. Q K-180: 44 pieces

    29. Q Super Star Power: 25 pieces

    30. Q Power 9: 22 pieces

    31. Q XL-8: 13 pieces

    32. Q Canodro I: 24 pieces

    33. Q Power 2000: 236 pieces

    34. Q J-2000: 20 pieces

    35. Q Power Pro: 20 pieces

    36. Q 3310: 14 pieces

    37. China Cromax: 14 pieces

    38. Q S P2000: 150 pieces

    39. Rivo R-800: 135 pieces

    40. Vigo Tel: 200 pieces

    41. Q Gold Pro: 50 pieces

    42. Voice V-60: 100 pieces

    43. Q-S P2000: 150 pieces

    44. Rivo R-800: 135 pieces

    45. Vigo Tel: 200 pieces

    46. Q Gold Pro: 50 pieces

    47. Voice V-60: 100 pieces

    48. Mobile Phones assorted make and model: 2,592 pieces

    49. Q-Mobile Q-3330: 315 pieces

    50. Q-Mobile CS-3: 155 pieces

    51. Q-Mobile I-Stone X-20: 08 pieces

    52. Q-Mobile K-180: 1220 pieces

    53. Q-Mobile Hero Power: 648 pieces

    54. Q-Mobile E-1000 P: 838 pieces

    55. Q-Mobile E4: 753 pieces

    56. Q-Mobile 4000 PRO: 348 pieces

    57. Q-Mobile LI Classic: 498 pieces

    58. Sony Sov 33: 30 pieces

  • Mobile phone imports sharply increase by 86 percent to Rs61 billion in four months

    Mobile phone imports sharply increase by 86 percent to Rs61 billion in four months

    ISLAMABAD: Pakistan – the country endeavoring to reduce import bill to control external sector challenges – has imported mobile phones amounting Rs61 billion, during first four months (July – October) 2019/2020 which is 86 percent higher than corresponding period of last fiscal year.

    The mobile phone import was Rs61 billion during first four months of current fiscal year as compared with Rs32.7 billion in the corresponding months of the last fiscal year, Pakistan Bureau of Statistics (PBS) said on Tuesday.

    The unprecedented growth in mobile phone can be attributed to significant decline in rupee value during the last year.

    However, in dollar terms the import remained higher by 49 percent. The country spends $388 million on import of mobile phones during July – October 2019/2020 as compared with $260.41 million in the corresponding period of the last fiscal year.

    Sources in Pakistan Customs said that the phenomenal increase in mobile phones was due to anti-smuggling measures taken by the government.

    They said that now a mobile phone would have active network only when it was verified through a system introduced by Pakistan Telecom Authority (PTA).

    The sources said that mobile devices are required to verify their IMEI through phone registration system of the PTA otherwise such phones would not have connections of existing cellular networks in the country.

    The source said that in the past a huge number of mobile phones were brought in the country without paying duty and taxes. But now those mobile that were not offered for registration would not be activated.

    The import of mobile phone witnessed even sharp increase in October 2019 to $118.65 million as compared with $61.19 million in the same month of the last year. Similarly, in terms of rupee the import registered 132 percent to Rs18.5 billion in October 2019 as compared with Rs7.98 billion in the same month of the last year.

  • Pakistan spends Rs42.4 billion for import of mobile phones in three months

    Pakistan spends Rs42.4 billion for import of mobile phones in three months

    KARACHI: Pakistani nationals have spent Rs42.4 billion for import of mobile phones in three months despite challenging economic conditions.

    The import of mobile phones registered 71.5 percent growth to Rs42.4 billion during first quarter (July – September) of fiscal year 2019/2020 as compared with Rs24.72 billion in the corresponding period of the last year, official statistics revealed.

    It is interesting to note that the surge in import of mobile phones has been witnessed when the economy is facing challenges and imports of other things are on declining trend.

    Sources in Pakistan Customs said that the substantial increase in mobile phones was due to anti-smuggling measures taken by the government.

    They said that now a mobile phone would have active network only when it was verified through a system introduced by Pakistan Telecom Authority (PTA).

    The sources said that mobile devices are required to verify their IMEI through phone registration system of the PTA otherwise such phones would not have connections of existing cellular networks in the country.

    The source said that in the past a huge number of mobile phones were brought in the country without paying duty and taxes. But now those mobile that were not offered for registration would not be activated.

    The sources further attributed the sharp increase in value to massive decline in rupee value.

    In dollar term the import of mobile phones posted 35 percent increase to $269 million during first quarter of current fiscal year as compared with $199 million in the same period of the last fiscal year.

    The import of mobile phones in September 2019 witnessed even more sharp increase of 69 percent in dollar term and 113 percent in Pak Rupee term.

    In term of Rupees the country imported mobile phones worth Rs16.48 billion in September 2019 as compared with Rs7.73 billion in the same month of the last year.

  • FBR updates sales tax rates on mobile phones on import, local supply

    FBR updates sales tax rates on mobile phones on import, local supply

    KARACHI: Federal Board of Revenue (FBR) has updated sales tax rates on import or local supply of mobile phones to be applicable for Tax Year 2020 (July 01, 2019 to June 30, 2020).

    The FBR issued Sales Tax Act, 1990 updated up to June 30, 2019 incorporating changes brought through Finance Act, 2019.

    The FBR 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

     

     

    		Rs135Rs135 
     B. Exceeding US$ 30 but not exceeding US$ 100Rs1,320Rs1,320 
     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.