ISLAMABAD: In a significant move aimed at promoting digital accessibility and e-commerce in Pakistan, the government has reduced the advance tax on the import of mobile phones.
This change was implemented through the promulgation of a presidential ordinance, and the Federal Board of Revenue (FBR) issued the key amendments under the Tax Laws (Second Amendment) Ordinance, 2019.
According to the FBR, prior to the amendment, an advance income tax of Rs730 was applicable on mobile phones valued between $30 and $100. However, under the revised structure, the advance tax has been slashed to just Rs100 for phones in this price range, significantly reducing the cost burden on importers and consumers.
This initiative supports the government’s broader strategy to encourage financial inclusion and expand access to smartphones, especially among lower and middle-income segments of society. The reduction in advance tax is expected to facilitate greater access to mobile technology and promote digital connectivity.
The updated advance tax rates on mobile phone imports are as follows:
1. Up to $30 – Rs70
2. Exceeding $30 and up to $100 – Rs100
3. Exceeding $100 and up to $200 – Rs930
4. Exceeding $200 and up to $350 – Rs970
5. Exceeding $350 and up to $500 – Rs3,000
6. Exceeding $500 – Rs5,200
The FBR emphasized that this revision aligns with the government’s digital policy and fiscal strategy. By lowering the advance income tax, the authorities aim to simplify import procedures and reduce the financial burden on mobile phone users across Pakistan.