New Mobile Phone Tax in Pakistan 2019 Updated

Mobile Phone Tax in Pakistan Airport 2019 UPDATED:

The most confusing taxes on mobile phones in Pakistan has been revised and updated to 6 categories, you’re tired of googling it but yes this is the case, they don’t public official announcements, pathetic!

So under the new mobile phone duty structure, it will depend on one of the 6 tax slabs the FBR (Federal Board of Revenue) has introduced.

First let’s revise major questions again:

How many mobile phones can you bring with you in Pakistan?

A Passenger (Pakistani/Overseas/Foreigner) can bring in 5 (five) mobile phones per year to Pakistan for personal use / or as a gift.

What if you want to use an International SIM during your stay in Pakistan?

If you have plan to use an International SIM in your mobile phone (Roaming Mode) then you do not need any sort of registration to do. You can freely use your international SIM during your stay in Pakistan as long as you want.

What if you want to use a Local Network SIM?

If you are planning to use a Local SIM whether Zong, Ufone, Telenor, Mobilink or Warid, you need to register your Mobile Device IMEIs using DIRBS online portal/or counter at airport.

Carrying more than 1 (one) Phone along? How many mobile phones you get free?

1 (One phone) is exempted from any kind of taxes/duties, for others you need to pay taxes according to slabs. Please note this isn’t the case of each trip, you can only bring 1 (one) mobile phone duty free in Pakistan and total 5 (five) mobiles phones for personal use / gifts during period of 1 (one) year.

For example: If you are planning to bring 5 (five) mobile phones along for your personal use, you would need to pay duties and taxes for 4 (four) of them. As 1 (one) mobile phone will be exempted from the taxes in one year.

Do you need to register a phone that you bought and already used here before leaving the country?

No, International Passengers carrying mobile devices that are already registered by PTA, do not need to go through the registration process.

Okay let’s get back to Mobile Phone Tax Rates.

The old duty and taxes structure has been revised into six new slabs now. The following table shows new rates and can help you find out how much you will have to pay as taxes in Pakistan.

mobile phone tax in pakistan 2019
New mobile phone tax and duty structure 2019.

The change in the regulatory duty structure made through the Finance Sup­plementary (Amend­ment) Bill 2018 will help in collection of maximum revenue by facilitating fair assessment of mobile phones at import stage. Officials said.

Mobile Tax & Duties Breakdown

Imported mobile phones will have the following taxes and duties applicable to them:

  • Customs Duty
  • Regulatory Duty
  • Sales Tax
  • Additional Sales Tax
  • IT Duty
  • Mobile Levy
  • Provincial Tax

How Mobile Phone Tax Calculated? Here’s an explanation.

Mobile Phone Tax in Pakistan Calculation Example
  • Value of a phone assessed by Customs is Value A
  • Add 1% Insurance on Value A, this would become Value B
  • Add 1% Landing charges on Value B, this would become Value C
  • Now, this Value C is important because Customs will now Apply/calculate all Duty/Taxes on Value C, not Value A.

If Value A = $100, then its Value B will be $101. Its Value C would then be $102.01 (and not $100).

Now that the value of the phone has been determined- it will be converted from USD to PKR at Inter-Bank rates for that particular day.

Now that we have the phone’s value, the following formulas will be applied for taxes and duties:

  • Value C + Fixed Custom/Regulatory Duty = Value D
  • Value D + Fixed Sales Tax = Value E
  • Value E + 3% Additional Sales Tax = Value F
  • Value F + 9% or 6% Income Tax = Value G
  • Value G + Applicable Mobile Handset Levy = Value H
  • Value H + Rs 1000 fix Sindh Stamp Duty = Value J
  • Value I + 1.16% CESS Duty = Value K

Value J + Value K – Value C = Tax Amount you will have to pay.

Quite complicated? Yes but that’s how it works.

Right now this is the case if you want to bring mobile phones in Pakistan, you can plan and decide whether it will help you or cost you more.

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