Update on Regularity Duty in Pakistan on Mobile Phones in (2023)
As per the recent update the regularity duty on 31 march 2023 is reached to the end of its term and due to the removal of regularity duty there is a small decrease in total pta custom duty/tax in Pakistan.Due to this change we have seen price drop in different mobile phone manufacturing companies (e.g. Xiaomi,infinix and Vivo).
On the other hand FBR Also clarified that the old SRO about the regularity duty on mobile phones in Pakistan is expired which doesn’t mean that FBR will not impose the regularity duty on mobile phone again.So there are chances that the regularity duty will be applied in future but it is not confirmed yet.Ministry of commerce will decide about this duty.
So for the time being now we are seeing price drop in new mobile phones in Pakistan which is a good sign.
As we all know that a new tax policy for Mobile phones was launched in 2019 and with this new policy the IMEI of all mobile phones needs to be registered and added to a database maintained by PTA.
If the IMEI is not added to the PTA database then mobile phone is considered to be a non-compliant and it will be blocked by PTA for All mobile networks in Pakistan.
Although there are details of custom duty & tax on mobiles phones are available on multiple websites, i personally believe that the details are not simplified and are very difficult to understand and calculate tax on mobile which someone is importing to Pakistan.
Details of Custom Duty & Tax on Mobile Phones in Pakistan
Mobile Phone imports are categorized in 2 categories.
- Commercial Imports
- Usage Imports
Commercial Imports
This is a category for shop keepers/vendors who imports in a large quantity and then sell the mobile to customers.This category has following taxes applied.
- RD Tax
- Sales Tax
- Withholding tax
- Mobile Levy
Usage Imports
This category is for normal home based users who import or purchase phones from abroad and then bring it to Pakistan.There is a small difference in this category and that difference is WHT doesn’t apply on this category.
- RD Tax
- Sales Tax
- Mobile Levy
Apart from categories mobile phones are future divided into slabs according to the price range of that mobile.PTA maintains a list of IMEI of each mobile provider,model number and actual price of mobile phone.
So when we go to register any mobile purchased from abroad we need to provide the IMEI to PTA and they will check it in their list and add the total amount of tax as per the price slab of that mobile device.
In the past people use to create invoice with a lower price and then pay small amount of money but that method doesn’t work anymore as PTA maintains a list of IMEI with prices .e.g. PTA has list of IMEI attached to iPhone 11 series and they put iPhone 11 into the list of phone which are higher than $500 in price.
Price slabs table for Tax & custom duties in Pakistan
Commercial Import Category
| S.No. | Price Range of Phone | RD TAX | Sales Tax | With Holding Tax | Mobile Levy | Total Tax Applied |
|---|---|---|---|---|---|---|
| 1 | Up to $30 | 165 | 135 | 70 | 0 | 370 |
| 2 | Above $30 and up to $100 | 1620 | 1320 | 730 | 0 | 3,670 |
| 3 | Above $100 and up to $200 | 2430 | 1680 | 930 | 400 | 5,440 |
| 4 | Above $200 and up to $350 | 3240 | 1740 | 970 | 1200 | 7,150 |
| 5 | Above $350 and up to $500 | 9450 | 5400 | 3000 | 2800 | 20,650 |
| 5 | Above $500 | 16650 | 9270 | 5200 | 5600 | 36,720 |
Usage Import Category
| S.No. | Price Range of Phone | RD TAX | Sales Tax | With Holding Tax | Mobile Levy | Total Tax Applied |
|---|---|---|---|---|---|---|
| 1 | Up to $30 | 165 | 135 | 0 | 0 | 300 |
| 2 | Above $30 and up to $100 | 1620 | 1320 | 0 | 0 | 2,940 |
| 3 | Above $100 and up to $200 | 2430 | 1680 | 0 | 400 | 4,510 |
| 4 | Above $200 and up to $350 | 3240 | 1740 | 0 | 1200 | 6,180 |
| 5 | Above $350 and up to $500 | 9450 | 5400 | 0 | 2800 | 17,650 |
| 5 | Above $500 | 16650 | 9270 | 0 | 5600 | 31,520 |
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Example Calculation of Tax on iPhone 11 purchased from USA
iPhone 11 (64 GB)
Actual price on apple website : $699
Tax in USA : Around $99
Price after Tax in USA : $799 (Pakistani Rupees : 123,500
Custom duty and Tax to be paid in Pakistan : Rs. 31,520
Total Actual price after tax in Pakistan : Rs. 155,000
So if you have a relative who lives in USA and you are thinking to buy an iPhone 11 from USA then you will have to pay a total of Rs. 155,000 Pakistani rupees.
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How to check if the Mobile Phone is PTA Compliant ?
Before buy a mobile phone it is very important to check that the mobile phone is PTA compliant and it can be checked by sending the imei of mobile to 8484 or at pta dirbs.
We have also written a details posts on things you should check before buying a used phone in Pakistan.
Registration of Mobile Phones is a good step as it will generate revenue for the govt and also it will help stopping the theft of mobile phones as mobile phone become useless if it is not a PTA compliant phone.
Personally i think that the tax amount is high and there are lot of taxes being applied on the phone purchased from abroad.Govt should try to reduce the amount of tax as the imported phones have become really expensive after these taxes.
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