The federal government has notified a substantial mobile phone import tax cut on imported smartphones priced between $101 and $200, slashing the advance income tax rate by nearly 89%. The details were shared by the finance minister in a written reply submitted to the Senate.
Under the revised rates, the advance income tax on this mid-tier bracket has dropped from Rs930 to Rs100 per device, providing a direct saving of Rs830. Alongside this, authorities reduced the mobile handset levy by two-thirds, bringing it down from Rs600 to Rs200 per unit.
Relief Focused on Mid-Tier Devices
The combined adjustment reduces the direct import duty burden on handsets in the $101 to $200 range by Rs1,230 per unit. Importers previously paid Rs1,530 in advance tax and handset levies combined, but they will now pay Rs300 across these two heads.
Officials indicated that the measure aims to balance cellular service taxation and ease import costs for entry-level smartphones. However, the government's submission to the upper house did not detail the total revenue impact of these concessions, nor does it mandate that retail sellers pass these cost reductions directly on to end consumers.
Sales Tax Rules Remain Unchanged
While advance taxes on mid-tier phones have dropped, broader sales taxes under the Ninth Schedule of the Sales Tax Act, 1990 remain in force. Devices priced outside the $101 to $200 window will continue to face their existing rates.
Imported mobile devices valued up to $500 continue to incur an 18% sales tax, while higher-end models valued above $500 remain subject to a 25% sales tax rate. Domestically manufactured or assembled phones also remain taxed at 18%, and the standard sales tax of Rs250 per newly activated SIM card remains unchanged.
Aasan alfaaz mein
Hukumat ne $101 se $200 ki qeemat walay imported mobile phones par advance income tax Rs930 se kam kar ke Rs100 kar diya hai. Iske sath mobile handset levy bhi Rs600 se ghata kar Rs200 kar di gayi hai, jis se aik phone par kul Rs1,230 ki bachat hogi. Sales tax ki sharah purani hi rahegi, aur yeh wazeh nahi hai ke dukandar is kami ka faida aam khareedaron ko kitna pohanchatay hain.
