Govt Withdraws Tax Exemption on Phones Brought by International Travelers

Until now, the government had allowed international travelers to register one phone with DIRBS without paying any taxes. The baggage rule exemption has now been withdrawn and the facility of registration of one mobile phone on one passport (for international travelers) without tax will be removed soon.

The decision has been taken to generate additional revenue as well as to stop the misuse of the baggage rule.

International travelers will have to pay taxes even if they bring a single mobile phone, once the government notification is issued.

During a press conference of the Federal Board of Revenue (FBR) on budget 2019-20, Member Inland Revenue and Policy, Dr Hamid Ateeq, revealed that the baggage facility is being misused and therefore it has been decided to withdraw this facility.

The government’s new initiative, i.e. Device Identification Registration and Blocking System (DIRBS), that aims to curtail smuggling of mobile phones has reportedly failed to achieve the desired results due to the legalization of smuggled phones through possible loopholes in the existing system at airports.

Misuse of data is being done in violation of FBR baggage rule law where user credentials, including passport and CNIC, are being used to register phones under the baggage rule exemption.

Pakistan Telecommunication Authority (PTA) has also confessed that passenger data was leaked and those details were used for illegal registration of mobile devices (through DIRBS) with the connivance of travel agents and the data available at airports.

PTA has sent around 760 cases of data theft to the Federal Investigation Agency (FIA) and several arrests have been made so far.

It was also observed that mobile phones are also being registered in the name of children and it cannot happen without the involvement of internal resources. The system was launched to curb smuggling but it has done less good and caused more problems for customers.

According to PTA data, over 663,622 individual users have registered themselves with DIRBS since February 2019. Out of these, 440,821 were registered under FBR baggage rule exemption with no tax, while 12,293 were registered under the duty paid category.

  • That’s pathetic. The mechanism should have been improved instead of banning exemption all together. Gareeb ko maardon takay gareebi khatam hojaye. Incompetent people.

  • Aik Patriotic Pakistani hone k bawajood yeh news parh kr mere zehan mai yeh
    baat ai hai k Pakistan Sucks… Just because of such stupid policies by the governments

  • Government should implement Thumb Scan verification as necessary.. while registering through DIRBS website. So that theft credentials of passport and NIC can be sort out easily.
    Option 2: Make offices again to register Phones physically being there!
    Simply applying the same policy on a single phone on a genuine traveller and buyer is not an option at all !

  • This govt. like the previous ones are good for nothing. Are we missing leadership and brains in this country. If you are bringing one policy and scrapping it within a year, why are you sitting there in the parliament. I better get such policy making done on the roadside it will cost me nothing. Now most of the NRPs coming to Pakistan would rather enjoy somewhere outside and better not come here then.

  • Even an ordinary business graduate of a local university can make better economic policies. This is ridiculous to make international travellers suffer instead of preventing wrong deeds of others.

  • The govt should improve its system,the govt collect same tax on as well as new phones ,older more than two years of release the tax should be lower but I think it is failure of govt as well as system,I bought a device of 1500 RS but the tax was 900 hundred ,what a pathetic situation.

  • Dirbs should be ended. Ghareeb Kia achay phones istimal nahi ker sakta jesay k imported American kits. Shame on pti gov. Loota va pesa wapas lao, awaam ko na nichoro.

  • My friend came with model iPhone 5s from Dubai and the tax calculation says rupees 8,899/- however the phone is available in market in the range of 8 to 10 thousand. They are charging more than the actual current value of phone.

        • I feel sorry for you and your relatives. Cant you see what happens to people who badmouth Imran Khan?

          Allah killed Nawaz Shareef’s wife and he himself is in jail because he was against Imran Khan.

          Allah killed Qamar Zaman Kaira’s son because he mocked Imran Khan.

          Allah takes revenge Himself if you are not with Imran Khan.

          Also, you are a liar. PTI voters can never curse Imran Khan in this life. NEVER. We love him. He’s the chosen one. He’s the one.

          Imran Khan Zindzbad
          PTI Zindabad

  • I have a very cool idea, Govt should implement a new system, every smart phone users should pay monthly mobile usages fee, i e 1000 monthly, and the system should be automatic, if you not pay, u ll not be able to use mobile, and once u start paying it should work,
    Gove can choose categories
    ie, expensive smart phone more monthly charges
    Less expensive phone less monthly charges

    • I love this idea. Mobile phone use should not be cheap. Anyone who buys mobile phone should be charged monthly. I am sure people are willing to pay 5000-10000 Rupees a month for mobile phone usage to most honest and loved leader in whole history of this universe.

      It is for betterment of Pakistan.

      Imran Khan Zindabad
      PTI Zindabad

  • What do you mean by international travellers. Those who are traveling on NICOP will have to pay taxes too Also if we are having only one phone for our own use. Even then taxes will apply. Please answer

  • I love PTI government. They are charging PKR 95000 to PKR 145000 tax on a used iPhone. They should double the tax on international travelers. A person who can travel on airplane can afford to pay 300000+ for a used phone.

    PTI Zindabad. Imran Khan Zindabad.

  • Pakistan is ruled by the most ignorant people from the very beginning. The deserved people are deprived but non deserved people are enjoying. All the failures burden are come to the common people only & v the common people suffer.

    • Imran Khan is not ignorant. He’s the best thing ever happened to this country. Every Pakistani living abroad is a billionaire. He should be charged 5000% tax when visiting Pakistan. Government should not let anyone leave the country without charging duties for the betterment of Pakistan. Put these rich people on ECL.

      Imran Khan Zindabad

        • You are ghaddaar. I am a true patriot. I love army. I love Imran Khan. I love PTI. Anyone criticizing or not agreeing with Army or Khan should be hanged. Only solution to my country’s problem is to eliminate your kind.

  • By this rule, all personnel who earn below 250% of average per capita income should be killed and Pakistan would become a great economically growing country.

  • Can you plz tell me where did you get this news non of any media report this topic and no one posted this type of news .except you and phone world . By the way pta site still registers mobile with pasport id and board pass copy .no tax on single phone .plz let me know the source of this news if it’s 100%, truth .if you don’t have any source then plz don’t mis guide the people

  • Government should implement Thumb Scan verification as necessary.. while registering through DIRBS website. So that theft credentials of passport and NIC can be sort out easily.
    Option 2: Make offices again to register Phones physically being there!
    Simply applying the same policy on a single phone on a genuine traveller and buyer is not an option at all !

  • Tax dena nai aur inko chahiye naya Pakistan. How can a country progress if its inhibitors won’t pay their taxes.

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