Flagship cellphones’ prices are set to rise as the Federal Board of Revenue (FBR) has announced a 25% sales tax on the import of mobile phones in Completely Built Up (CBU) condition with a value exceeding $500 per unit.
According to the amended Sales Tax Act, imports of mobile and satellite phones will incur a 25% sales tax based on the import value above $500 per unit, or the equivalent value in rupees if the producer supplies the device.
Mobile phones in CBU condition at the time of import or registration (IMEI number by CMOs) will be subject to this 25% sales tax. However, CBU phones valued at less than $500 will face an 18% sales tax.
Moreover, an 18% sales tax will apply to locally manufactured mobile phones in CBU condition, alongside an 18% sales tax on imports in CKD/SKD condition.
The sales tax rate will be 18% for imports in CKD/SKD condition and for the supply of locally manufactured mobile phones in CBU condition, regardless of whether the value exceeds $500 or not.
