FBR Withdraws Tax-Free Mobile Import – Misused Facility

The Federal Board of Revenue (FBR) has decided to withdraw baggage facility available to the incoming international passengers for importing one duty and tax-free mobile from July 1, 2019.

This step taken by FBR is appreciable as it will discourage the mobile smuggling mafias who were misusing the baggage facility available to the incoming international passengers. With the collaboration of PTA, FBR is improving the overall system in order to stop the smuggling of imported phones.

FBR Member Inland Revenue Policy Hamid Atiq Sarver informed Senate Standing Committee on Finance that 80 percent of the phones being sold in the market are those which are imported in violation of the baggage rules.

FBR Withdraws Tax-Free Mobile Import-Misused Facility

These phones are imported due to the abuse of the baggage scheme in connivance of the concerned persons. Keeping in view massive misuse of the facility, the FBR has decided to withdraw the facility of one duties and taxes free import phone under the baggage scheme from July 1, 2019.

Senator Ghous Mohammad Khan Niazi proposed that the advance tax being collected from the subscribers of mobile phones should be withdrawn. It is an injustice to the common man.

Pakistan Tehreek-e-Insaf (PTI) Senator proposed that abolition of 3 percent tax on the import of mobile phone should be reviewed as it is a good step for generation of revenue and does not directly affect the lower income group.

FBR Member Policy added that the FBR has merged duties and taxes on the import of mobile phones and proposed fixed slabs of taxes under the Finance Bill 2019 for different categories of mobile phones.

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