No New Sales Tax on SIM Cards: FBR

The Federal Board of Revenue (FBR) has stated that the FBR has not imposed any new sales tax of Rs. 250 per new mobile phone SIM through amendments in the Finance Bill 2020.

A senior official said that the sales tax table on Mobile Phones had been divided into two parts to promote local manufacturing of mobile phones, and charging a reduced rate of sales tax on them.

The two stages include sales tax at CKD form import and sales tax at the local sales stage.

Under the Finance Bill 2020, the previous table has been split into two tables without any changes in the sales tax rates.

The first category is the imposition of the sales tax on supply (payable at the time of supply by CMOs).

Sales tax of Rs. 250 is payable on SIM cards on supply (payable at the time of supply by CMOs).

The second table specifies the rate of sales tax on cellular mobile phones in CKD/CBU form.

Sales tax will be charged on the import in CKD/SKD condition, and sales tax will be charged on the supply of locally-manufactured mobile phones in CBU condition.

However, there is no enhancement in the sales tax rates on mobile phones.

No such taxation measure has been taken to impose a sales tax of Rs. 250 per new SIM through Finance Act, 2020. The news in this regard is baseless and without any legal backing, the official added.


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