Details of taxes imposed by FRB on Mobile Phones and Imported Vehicles

By Matthias Samuel

The Federal Board of Revenue (FBR) has released the key details of the Finance Act 2019, according to which, a tax has been imposed on mobile phone worth US$ 30 or above while the condition of CNIC on the purchase of Rs 50,000 and above will be in effect from August 1, 2019.

As per the details issued by the FBR, Rs 135 tax will be applicable on the purchase of a mobile phone worth US$ 30.

Likewise, Rs 1320 will have to be paid as tax on mobile phones worth US$ 30 to US$ 100, Rs 1680 on mobile phones worth US$ 100 to US$ 200, and Rs 1740 on mobile phones worth US$ 200 to US$ 350.

The FBR stated that under the Finance Act 2019, Rs 5400 will be charged as tax on mobiles costing US$ 350 to US$ 500, and Rs 9270 on mobiles worth over US$ 500.

Following are the new slabs of duty on mobile phones according to FBR:

S. No. Mobile Phones Prices (in US Dollars)       Tax rates (in Pakistani rupees)
1             up to $30 Rs 135
2 above $30 and up to $100 Rs 1,320
3 above $100 and up to $200 Rs 1,680
4 above $200 and up to $350 Rs 1,740
5 above $350 and up to $500 Rs 5,400
6             above $500 Rs 9,270

Federal Excise Duty on Imported Vehicles

On the other hand, the government has increased the excise duty on the import of vehicles.

According to the FBR, the government has imposed 2.5 percent federal excise duty on the import of 1000cc car, 5 percent on 1000-1799cc car, 25 percent on 1800-3000cc car, and 30 percent on the car above 3001cc.

READ  Passenger cars production in Pakistan up 44.4% in 5 months

Exempting Auto Rickshaw from the federal excise duty, the FBR imposed 5 percent federal excise duty on locally-manufactured vehicle of 1000cc to 2000cc capacity engines and 7 percent on vehicle above 2000cc.

 

Matthias Samuel is a student of history in Quaid-i-Azam University (QAU) Islamabad, and occasionally writes blogs and articles.