taxes on mobile phones

Importing mobile phones or asking for relatives to fly them over has now become expensive. Now, individuals will have to pay Customs Duty and taxes.

There are, however, several conditions to make the policy easy on overseas Pakistanis who are flying in for short visits. According to the policy, each individual (Pakistani or overseas Pakistani) can carry up to 5 handsets per year.

Out of the 5, one will be free, whereas taxes and duties will be applicable on the rest. Furthermore, those handsets which have not been paid for will be blocked within 30 days.  Those who have foreign SIMs with roaming on will also get cleared from paying these taxes.

This is applicable on handsets flowing into Pakistan after 1st December.

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Mobile Tax & Duties Breakdown

Imported phones will have the following taxes and duties applicable to them:

  • Customs Duty
  • Regulatory Duty
  • Sales Tax
  • Additional Sales Tax
  • IT Duty
  • Mobile Levy
  • Provincial Tax

Customs Duty 

The fixed amount for Customs Duty is PKR 250.

Regulatory Duty

Mobile phones worth in-between $1-60 will be taxed with Rs.250. Handsets worth in between $61-130 will be taxed with 10% of the value. Whereas phone worth over $130 will be taxed with 20% of their value under Regulatory Duty.

Value of Phone (USD)Taxation
$1-60Rs. 250
$61-13010% of the value
$130+20% of the value

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Sales Tax

Sales tax is fixed at Rs. 1500 per handset.

Additional Sales Tax

Additional sales tax is fixed at 3% of the phone’s actual value.

IT Tax

The fixed amount for IT Tax is 9% of the phone’s value.

Mobile Levy

Value of Phone (PKR)Levy
Rs 10,000 to 40,000Rs 1000
Rs 40,000 to 80,000Rs 3000
Over Rs 80,000Rs 5000

 

Example
  • Value of a phone declared by Customs is Value A
  • Add 1% Insurance on Value A, this would become Value B
  • Add 1% Landing charges on Value B, this would become Value C
  • Now, this Value C is important because Customs will now Apply/calculate all Duty/Taxes on Value C, not Value A.

If Value A = $100, then its Value B will be $101. Its Value C would then be $102.01 (and not $100).

Now that the value of the phone has been determined- it will be converted from USD to PKR at Inter-Bank rates for that particular day.

Now that we have the phone’s value, the following formulas will be applied for taxes and duties:

  • Value C + 10% or 20% Regulatory Duty = Value D
  • Value D + Rs 250 fix Customs Duty = Value E
  • Value E + 3% Additional Sales Tax = Value F
  • Value F + Rs 1500 fix Sales Tax = Value G
  • Value G + 9% or 6% Income Tax = Value H
  • Value H + Rs 1000 or greater as Mobile Handset Levy = Value I
  • Value I + Rs 1000 fix Sindh Stamp Duty = Value J
  • Value C + 1.16% CESS Duty = Value K

Value J + Value K – Value C = ___ PKR. This is the final amount which is the total of Duty/Taxes that an individual will have to pay.

Taxation Per Phone

The following chart explains how much taxation will have to be paid according to the value of the handset.

Value of MobileTaxation (PKR)
$50Rs 4,641
$100Rs 6,367
$150Rs 8,083
$200Rs 13,116
$250Rs 15,666
$300Rs 20,216
$350Rs 22,767
$400Rs 25,317
$450Rs 27,867
$500Rs 30,417
$550Rs 34,967
$600Rs 37,517
$650Rs 40,067
$700Rs 42,618
$800Rs 47,718
$900Rs 52,818
$1000Rs 57,918
$1200Rs 68,119
$1400Rs 78,319
$1500Rs 83,420

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