Mobile phone prices have reached record levels, and the recent tax increases imposed by the Federal Board of Revenue (FBR) are likely to push these costs even higher.
The Federal Board of Revenue (FBR) has introduced a new sales tax policy under the updated Sales Tax Act, 1990, which came into effect on July 25, 2024.
The new policy imposes a 25% sales tax on imported completely built-up (CBU) mobile phones valued over $500 per unit. Phones worth $500 or less will be taxed at 18%.
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Locally assembled CBU phones will face an 18% sales tax, aligning with the rate for imports in CKD (completely knocked down) or SKD (semi-knocked down) forms.
The new tax policy targets expensive mobile phones to raise more money. Experts expect this will make high-end smartphones more expensive in Pakistan.
