In a recent development, as reported by ARY News, the federal government has slashed the withholding and sales tax on the import of mobile phones. The announcement came through a presidential ordinance on the eve of New Year which will be taken as a potential gift from the traders.
Decline in Withholding and Sales Tax
The withholding tax for mobile devices worth $30 to $100 has lessened from Rs730 to Rs100. A drop of Rs630 is observed which can be considered as a handsome change.
On the contrary, as per the order, the sales tax for on mobile phones worth up to $30 has been declined to Rs100. Similarly, the sales tax is now fixed at Rs200 for cell phones which cost up to $100.
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In September last year, the Federal Board of Revenue (FBR) also recommended to slash the import duty on mobile devices by 50%. The notion was to provide relief to the common man. Likewise, the recent slashing is being done to ease the traders and the layman.
FBR also issued a list of salient features to explain the amendments to Income Tax Ordinance, 2001 through Tax Laws (Second Amendment) Ordinance, 2001. These amendments shall apply to income tax, sales tax and customs duty.
Under the Tax Laws (Second Amendment) Ordinance 2019, the FBR has reduced sales tax on few categories of mobile phones. Besides, FBR has also approved lower rates of income tax at the import stage on certain categories of mobile phones.
Source: ARY News