The Federal Board of Revenue (FBR) is planning to reduce regulatory duty (RD) on imported phones by up to 50 percent.
A summary has been forwarded to the ministry of Finance in this regard. It says that the move is aimed at providing relief to the common man.
FBR believes that doing so will not affect the overall collection as lesser duties will encourage people to import more Mobiles in Pakistan.
“This reduction in duty/tax is expected to increase import volume of mobiles in Pakistan,” the summary said, adding that it will neutralize the otherwise negative impact of this measure to some extent.
The government had reduced duties and taxes on Mobile Phones in the last budget.
Up to 50 percent reduction in regulation duty is proposed on handsets within the range of $100 to $200. Here, the current RD rate of Rs. 2,430 has been proposed to be reduced by more than half to Rs. 1200.
Similarly, the Regulatory Duty of Smartphones worth above $200 and up to $350 will be slashed by Rs. 740, while up to Rs. 4500 will be decreased on phones ranging above $350 and under $500.
For more details, see the table below:
(C&F Value in USD)
|Existing RD (Rs)||Proposed RD (Rs)|
|Above 30 and upto 100||1620||1000|
|Above 100 and upto 200||2430||1200|
|Above 200 and upto 350||3240||2500|
|Above 350 and upto 500||9450||5000|
Moreover, the FBR has also proposed reduced duty on imported used clothes and polyester fiber.