Senate Recommends NA to Exempt GST for Phones Under Rs. 5,000

Senate of Pakistan has recommended the National Assembly to exempt general sales tax for phones that are less than Rs. 5,000 in value. These recommendations are made by Senate to National Assembly on Finance Bill 2015.

Recommendations issued by Senate said that phones with Rs. 5,000 or less in value are usually owned by people with limited resources, or those who live in far-flung areas of the country. Exempting taxes for such handsets will only help these resource-less people.

Government of Pakistan, in the Finance Bill 2015, proposed to double the sales tax on all sorts of phones. According to original proposed finance bill, sales tax on phones is increased from Rs. 150, 250 and 500 to Rs. 300, 500 and 1,000 respectively.

These taxes on phones are based on features of the phones.

Senate, on the other hands, thinks that sales tax on phones above Rs. 5,000 can be doubled — as originally proposed by the bill — however for the phones with lesser than Rs. 5,000 prices should be exempted from the taxes altogether.

National Assembly is currently deliberating the finance bill.

Tech reporter with over 10 years of experience, founder of ProPakistani.PK