Hey guys, In this article I’ll let you know how you can calculate custom mobile tax on importing mobile phones from overseas of Pakistan. As you know the Government has imposed taxes, huge taxes on bringing the mobile phones from overseas. This means either you import through a website or your relative/friend buy that for you and bring it to Pakistan. Whether mobiles are new or you’re already using you have to pay tax on those cell phones at the airport. I have mentioned those conditions below in which you won’t have to pay tax.
First I’ll let you know about how you can calculate custom mobile tax, which mobile phones are exempt from these taxes and when mobile phones will be tax chargeable and when not.
First of all, there are different types of taxes you’d pay. There is a provincial tax in case of Punjab Province, some customs and fixed taxes. Let’s suppose if you bring a mobile phone to province Punjab, there is an extra tax you’ll pay named as Provincial Tax whose value is 0.9% of the total mobile price. E.g if your mobile value is Rs 10,000, you’ll pay Rs 100 as the provincial tax to Punjab Government. Other provinces are exempt from this tax if you go there directly.
Types of Taxes in Custom Mobile Tax
As I mentioned earlier that there are different types of taxes you’ll have to pay on a mobile. There are some fixed taxes and some are based on mobile’s total price.
Fixed/Evaluation Mobile Tax
- Sales Tax: Rs 1500/-
- Custom Duty = Rs 250/-
- Additional Sales Tax = 3% of total mobile price
- IT Tax = 9% of total mobile price
- Provincial Tax = 0.9% of total value of mobile
- Mobile Levy Tax
The mobiles phones in between the price range of Rs 10,000 – Rs 40,000 will be imposed a levy tax of Rs 1000/-. Mobile which are in the price range of Rs 40,000 to Rs 80,000, there will be Rs 3,000 of levy tax you’ve to pay. Mobiles which are over Rs 80,000, levy tax will be imposed of Rs 5000.
- Regulatory Tax
In regulatory tax, there are 3 variations, if the mobile price fall in the range of $1 to $60, there is a tax of Rs 250/-. If the mobile price is between $61 to $130 then 10% of the total mobile price is chargeable. But if the mobile price is over $130, 20% of the total mobile price will be imposed on a mobile phone as a regulatory tax.
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Custom Tax Calculation Example
Let’s suppose there is a Samsung mobile whose price in Rs 95,000. If you bring that phone to Pakistan. I’ll demonstrate how much tax will be payable on that phone and you can also calculate on other devices using these calculations.
- 1500 – Sales Tax
- 250 – Custom Duty
- 5000 – Mobile Levy Tax
- Rs 95,000 * 3 / 100 = 2850 – Additional Sales Tax
- Total Price 95,000 * 9 / 100 = 8550 – IT Tax
- 95,000 * 20 / 100 = 19000 – Regulatory Tax
Total Payable Tax (Excluding 0.9% of total price tax if mobile is brought to Punjab province)
1500+ 250+ 5000+ 2850+ 8550+ 19000 = Rs 37150/- Tax Payable on Rs 95,000 Mobile Phone
These are the compound taxes you’ll have to pay when you bring/import a mobile phone in Pakistan. By following the above method you can calculate custom mobile tax on imported smartphones.
Phones which are exempt from Tax
Any mobile phones used in Pakistan before 1 December 2018, no duty will be imposed on these smartphones. Moreover, the important thing to know is that, If you bring only one phone then no tax will be payable on that (this condition is met if you bring one mobile phone in one year to Pakistan) But if you bring multiple phones in Pakistan, One phone will be exempt from tax and all others will be tax payable phones.
Another thing is that if you dont stay more than 30 days in Pakistan even then no custom tax is chargeable on your phone, but remember, these phones will get blocked for local networks if the stay exceeds the 30 days in Pakistan.
This is all you need to know about calculating custom mobile tax on imported smartphones.
InfoGraphic Custom Mobile Tax Calculations and Types of Taxes
Guys take a look at this complete information loaded info-graphic for easy understanding
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