A Customs Official Accused Of Charging Wrong Mobile Phone Levy

Some reports surfaced online revealing that a customs official allegedly charged a high levy of smartphones against a consignment of ordinary phones. Sources claim that an importer recently imported ordinary mobile phones, however, the customs officials categorized them as other smartphones to apply a higher levy. It is pertinent to mention here that the legal provision has been directed to impose a mobile phone levy on smartphones mentioned in a table categorically together with rates of levy per set. Moreover, the table was modified by replacing the words ‘category of smartphone’ with ‘mobile phones having C&F Value (US Dollars)’. Customs officials’ stance was that by changing the table, it had been granted the power to recover the said levy not only on smartphones but also on ordinary phones which did not fall in the category of smartphones.

Wrong Mobile Phone Levy Imposed On Ordinary Phones

In a significant development, the importer made a presentation to the Federal Board of Revenue (FBR) against the department, which referred the same to the finance division for clarification. Meanwhile, the relevant appellate forum concluded that the levy couldn’t be recovered without amending the charging section, and just by amending the table.

It was further stated that the charging section should remain unaltered. No one can alter or amend it by a mere substitution of a column in the heading of the table. The department further disclosed that the intention of the legislature was clear that phones other than smartphones were also subjected to the levy as reflected in the table. However, the importer won his stance by stating that the right to recovery of any levy rests in the charging section and the table is just meant to prescribe the rates at which such levy is to be recovered on different goods/items. Only the charging section can grant power to recover a levy on the article or class of goods. Mentioning a different class and types of category of goods is beyond the scope of the charging section.