*ISLAMABAD – In order to promote digital economy, the Federal Board ofRevenue (FBR) has reduced sales tax on mobile phones.*
“Ninth Schedule to the Sales Tax Act 1990 has been amended and sales tax onthe mobile phones upto the value of 30 US dollars has been reduced fromRs130 to Rs100 and phones having value upto 100 US Dollars from Rs1320 toRs200,” said FBR, while sharing Tax Laws (Second Amendment) Ordinance, 2019.
The mobile phone imports into the country increased by 63.62 percent duringthe first five months of the current fiscal year compared to thecorresponding period of last year.
The recent development may boost further demand for mobile phones in thecountry, after Pakistan imported mobile phones worth $498.466 millionduring July-November (2019-20) against the imports of $304.651 million inJuly-November (2018-19), showing growth of 63.63 percent, according to thedata of Pakistan Bureau of Statistics (PBS).
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FBR further said that in view of the higher tariff rates of electricity theconditions to qualify for a Tier 1 retailer have been amended so as toincrease the threshold of electricity consumption from Rs600,000 toRs1200,000.
Talking about persons who are required to integrate with the FBR or havebeen integrated, either do not get themselves integrated or do not makeproper compliance or tamper with the systems so installed so as to avoidcorrect reporting and recording of production and sales, will have to facepenalties/fines.
