The federal government has implemented a set tax rate of up to Rs. 5,200 per kit on the import of mobile phone assembly kits. For mobile phones valued up to $30, the tax is Rs. 70 for Completely Built-Up (CBU) units. Phones exceeding $30 but not more than $100 in value will have a fixed tax of Rs. 100 for CBU and no tax for CKD/SKD.
Phones valued between $100 and $200 will incur a fixed tax of Rs. 930 per kit in CBU condition, while those valued between $200 and $350 will be subject to a tax of Rs. 970 per kit. For phones valued between $350 and $500, the tax increases significantly to Rs. 5,000 for CBU and Rs. 3,000 for CKD/SKD units.
The tax rate for phones valued at over $500 has been set at 25 percent ad valorem for fully assembled smartphones, as per the Finance Bill 2024. This will result in higher taxes for high-end and premium smartphones. However, the tax rate for partially assembled or unassembled phones, as well as locally manufactured and supplied smartphones, will remain at 18 percent. This measure is expected to generate additional revenue of Rs. 33 billion in the fiscal year 2024-25.
As per the Finance Bill 2024, the sales tax on imported smartphones and IMEI registration has been increased to 25 percent ad valorem for smartphones with a value exceeding $500. This implies that premium and high-end smartphones will now be subject to this higher tax rate. Nevertheless, the 25 percent rate is applicable solely to fully assembled smartphones valued above $500. On the other hand, handsets that are either partially assembled or not yet assembled will still be taxed at an 18 percent rate, even if their value surpasses $500. This rule also extends to locally produced and distributed smartphones.