ISLAMABAD: The Federal Board of Revenue (FBR) is contemplating a decrease in taxes, on mobile phones imported into Pakistan from other countries a move that could offer substantial relief to Pakistanis living overseas.
At a session of the National Assembly’s Finance Committee FBR Chairman Rashid Langrial told legislators that the government is considering reducing duties on second-hand or inexpensive mobile phones imported by Pakistanis. He mentioned that the conclusive proposal regarding tax cuts is anticipated to be ready, by March.
The Chairman of the Pakistan Telecommunication Authority (PTA) informed the committee that 6 percent of mobile phones, in Pakistan are brought in from abroad whereas the other 94 percent are made domestically. He further mentioned that mobile phones produced locally have a tax rate of 5 to 6 percent while imported phones face substantially higher tariffs.
Customs Member Shakeel Shah told the committee that the government gathered Rs. 82 Billion in tax revenue from all mobile phone sales with just Rs. 18 Billion originating, from imported devices.
The proposed tax reduction is expected to make mobile phones more affordable for overseas Pakistanis and potentially increase the inflow of devices brought into the country.
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FBR major crackdown, seals tobacco factory in Mardan
The Federal Board of Revenue (FBR) conducted a significant operation in Mardan against an illegal cigarette factory, seizing its machinery.
The operation targeted a clandestine facility run by Universal Tobacco Company (Private) Limited, which had been secretly operating an undeclared production plant.
The confiscated machinery has an estimated daily production capacity of 6,000 to 7,000 kilograms of tobacco. If used for cigarette production, this could have generated daily revenue of approximately PKR 45 million.
The seized equipment was specifically used for the illegal manufacture of tobacco products. Legal proceedings against the company have been initiated following the seizure.
The Chief Commissioner and the enforcement team successfully executed the operation without any external pressure, highlighting the FBR’s commitment to upholding the rule of law and protecting national revenue.
FBR is actively working to eliminate illegal tobacco production and ensure the strict enforcement of tax regulations. In line with the directives of the Prime Minister of Pakistan, 120 Pakistan Rangers have been deployed to combat illegal cigarette trade, and special monitors have been appointed under the Sales Tax Act of 1990 and the Federal Excise Act of 2005.
Authorities emphasized that such actions are crucial in the ongoing efforts to eradicate illegal tobacco production in the country.
