The federal government has implemented a new tax structure affecting imported mobile phone assembly kits, aiming to streamline taxation across different price brackets.
Mobile phones valued up to $30: fixed tax of Rs. 70 for Completely Built-Up (CBU) units.
Mobile phones valued between $30 and $100: fixed tax of Rs. 100 for CBU units and no tax for CKD/SKD units.
Mobile phones valued between $100 and $200: fixed tax of Rs. 930 per kit for CBU units.
Mobile phones valued between $200 and $350: fixed tax of Rs. 970 per kit for CBU units.
Mobile phones valued between $350 and $500: fixed tax of Rs. 5,000 for CBU units and Rs. 3,000 for CKD/SKD units.
Mobile phones valued above $500: fixed tax of Rs. 11,500 for CBU units and Rs. 5,200 for CKD/SKD units.
The highest tax rates are reserved for phones exceeding $500, with Rs. 11,500 for CBU and Rs. 5,200 for CKD/SKD units.
Additionally, an 18 percent sales tax has been proposed on both imported mobile phone assembly kits and locally supplied devices in the upcoming fiscal year, expected to generate approximately Rs. 33 billion in revenue. This replaces the previous varied tax rates ranging from Rs. 10 to Rs. 9,270 per kit.
According to the Finance Bill 2024, smartphones valued above $500 will face a 25 percent ad valorem tax on imports and IMEI registration, specifically targeting high-end models. However, smartphones that are not fully assembled or locally manufactured will continue to be taxed at an 18 percent rate, even if their value exceeds $500.