Mini Budget Targets Costly Mobiles & Reduces Taxes on Budget Phones- Common Man Relieved

Yesterday, Finance Minister Asad Umar presented a mini-Budget in National Assembly revealing tax on import of Mobile phones.  While Presenting the Finance Supplementary (Second Amendment) Bill, 2019, Asad Umar said it was not a mini-budget but a set of economic reforms. The best thing about the Mini Budget is that taxes are imposed on Luxury/expensive mobile phones whereas on less priced items tax reduced by a significant margin. It clearly shows that a common man has tax relief in mini-budget.

Mini Budget on Mobile Phone- Here’s how revised taxation may affect you

According to the document, Cellular mobile phones or satellite phones to be charged on the basis of import value per set, or equivalent value in rupees in case of supply by the manufacturer. Here is the detail of taxes imposed on Expensive/cheap Mobiles.

The government has proposed to reduce the tax to Rs 400 from Rs 1025 on the mobile phone costing Rs 10,000. On the mobile phone that retail price is Rs 28000, the tax has reduced to Rs 4000 from existing Rs 4368. Similarly, the government would charge Rs 6000 tax on the mobile phone, which retail price is Rs 60,000. Meanwhile, there would be Rs 23000 tax on the phone that cost is Rs 150,000. Furthermore, the government would charge Rs 41000 on the import of phone, which cost is Rs 150,000 and plus.

Analysis:

When it comes to mini-Budget on mobile phones, Government has taken a very good initiative by reducing the prices of budget phones for a common man who can afford them. Whereas people who can afford expensive flagship devices will have to pay more, but that’s still fine as they can afford it too. On mobile phones import, taxes are higher on expensive mobile phones and on low priced mobile phones, import duties are less.

As three different taxes on cell phones have been clubbed into one, now combined tax will be imposed on import of mobile phone sets. Another good news is that no tax will be charged on prepaid mobile phone cards, which meant that the customer will get Rs100 balance on Rs100 top-up.

All about DIRBS:

• Mobile Taxes Calculator
• A Basic Guide for International Passengers Carrying Mobile Phones to Pakistan
• How to Verify the Status of Your Mobile Phone’s IMEI via SMS or APP?
• How to Bring Phone in Pakistan without Paying Tax?
• Overseas Pakistanis Can Bring only One Phone Free of Duty in a Year
• How to Check for an Invalid IMEI When Buying a Used Phone?
• How to Save Your Phone From PTA Blockage?!