The government has distinctively increased regulatory duties on mobile phones – a 240% hike in import duties and an additional Rs27 billion revenues in the new fiscal year. According to a notification issued by the Federal Board of Revenue (FBR), The recent regulatory duties will be applicable from Thursday – the first day of the new fiscal year, 2021-22.
To enable local manufacturing and import shift, the FBR directed that RD rates on the import of mobile phones will be increased in the next fiscal year. The regulatory duties on the import of mobile phones have been increased in the range of 32% to 240%, depending on the cost of the imported mobile phone.
The government has decided to increase import duties on handsets at a time when smart phones are in high demand, especially among students, due to pandemic-inforced online classes. This was the reason that the country imported $1.9 billion worth of mobile phones – up 63% – during the July-May period of the last fiscal year.
National Assembly indicates that based on C&F value up to $30, the existing RD per set would be increased from Rs165 to Rs300 in the budget for 2021-22. The RD has been increased on the import of mobile set having;
• Range of $31 to $100, the RD has been jacked up from Rs1,620 per set to Rs3000 per set in the budget.
• For the price value of set from $101 to $200, the RD rate increased from Rs2,430 per set to Rs7,500 per set in the budget.
• Value of the imported phone set from $201 to $350, the RD rate per mobile jacked up from Rs3,240 to Rs11000.
• Imported mobile sets ranging from $351 to $500, the RD rate has been increased from Rs9,450 to Rs15,000.
The finance bill also submits an upgrade in the prices of internet packages, mobile phone calls, and SMS. Rs1 tax will be applicable on phone calls exceeding 3 minutes and Rs0.10 tax on each SMS will stem as an income of Rs100 billion for the government.
Source: Express Tribune