New tax jacks up mobile phones prices in Pakistan

The Federal Board of Revenue has imposed a 25% sales tax on the imported and Completely Built Up (CBU) mobile phones with a value exceeding $500 per set.

The new tax policy was imposed under the updated Sales Tax Act, 1990 issued on July 25, 2024.

About 18% sales tax will be charged on imported CBU phones valued at $500 or less. While, 25% sales tax will be charged on phone valued over $500.

Moreover, the locally manufactured mobile phones in CBU condition will also attract an 18% sales tax, in addition to the 18% tax applicable on imports in CKD/SKD condition.

The move was made to generate additional revenue for the government. The new tax will jack up the prices of premium mobile devices in the country.