Table of Contents
With new rules, bringing a smartphone into Pakistan from a foreign country comes at a price. You’ll now have to pay taxes and duties for the phones you bring.
To make things a little easier, Pakistanis or Overseas Pakistanis can carry 5 phones into the country a year. Out of the 5 phones, they’ll be allowed to carry one for free while they’ll have to pay taxes and duties for the rest. If the handsets aren’t paid for within 30 days, they’ll be blocked. Read on to know about the details.
Mobile Tax & Duties You’ll Have To Pay For
Imported 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
The fixed amount for Customs Duty is PKR 250.
Mobile phones that cost between $1-60 will be taxed with Rs.250. Phones that cost between $61-130 will be taxed with 10% of the value. While phones worth over $130 will be taxed with 20% of their value under Regulatory Duty.
Value of Phone (USD) Taxation
|Value of Phone (USD)||Taxation|
|$61-130||10% of the value|
|$130+||20% of the value|
The sales tax is fixed at Rs. 1500 per handset.
Additional Sales Tax
Additional sales tax is fixed at 3% of the phone’s actual value.
The fixed amount for IT Tax is 9% of the phone’s value.
|Value of Phone (PKR)||Levy|
|Rs 10,000 to 40,000||Rs 1000|
|Rs 40,000 to 80,000||Rs 3000|
|Over Rs 80,000||Rs 5000|
- Value of a phone declared 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.
The following formulas will be applied for taxes and duties:
- Value C + 10% or 20% Regulatory Duty = Value D
- Value D + Rs 250 fix Customs Duty = Value E
- Value E + 3% Additional Sales Tax = Value F
- Value F + Rs 1500 fix Sales Tax = Value G
- Value G + 9% or 6% Income Tax = Value H
- Value H + Rs 1000 or greater as Mobile Handset Levy = Value I
- Value I + Rs 1000 fix Sindh Stamp Duty = Value J
- Value C + 1.16% CESS Duty = Value K
Value J + Value K – Value C = ___ PKR. This is the final amount which is the total of Duty/Taxes that an individual will have to pay.
Taxation Per Phone
The following chart explains how much taxation will have to be paid according to the value of the handset.
|Value of Mobile||Taxation (PKR)|