In a recent move, the Federal Board of Revenue (FBR) has implemented changes aimed at reducing taxes on phones for overseas travelers. Under the updated regulations, incoming international passengers, especially overseas travelers, are set to benefit from lower taxes on mobile phones.
The FBR’s decision, outlined in Valuation Ruling Number 1834 of 2023 by the Directorate of Valuation Karachi, introduces favorable conditions for those bringing in used or refurbished mobile phones. Notably, the ruling allows for a depreciation of up to 60 percent on such devices, providing substantial relief for individuals importing phones that are up to five years old.
However, it’s important to note that this tax reduction is specific to overseas travellers and does not extend to commercial importers of new mobile phones. The FBR has maintained existing tax rates for commercial imports, with duties and taxes levied based on standard customs values.
The new policy addresses the concerns of overseas Pakistanis, offering them a more affordable option for bringing in mobile phones. By introducing depreciation rates, the FBR aims to facilitate a smoother process for international passengers, aligning with the evolving dynamics of the mobile phone market.
This decision is part of the FBR’s broader strategy to balance the interests of different stakeholders in the mobile phone sector. While overseas travellers experience a tax reduction, commercial importers continue to operate under the established tax framework.
As the FBR seeks to strike a balance between providing relief to specific segments and maintaining fiscal discipline, the impact of these changes will unfold over time. Stakeholders, including travelers and importers, will closely monitor the implications of the revised regulations on mobile phone imports.