Foreign tourists can receive a tax reduction on mobile phones from FBR.
The Federal Board of Revenue (FBR) recently changed its valuation ruling, giving Pakistanis living abroad relief while keeping things as they are for business importers in the mobile phone industry.
The Directorate of Valuation Karachi has recently published Valuation Ruling Number 1834 of 2023, which would result in higher depreciation rates for incoming foreign passengers—particularly Pakistanis living abroad.
The decision permits a 60 percent depreciation on reconditioned or used cell phones, which is a big break for people who are bringing in gadgets that are no older than five years.
Not a single break for business importers
Commercial importers of new mobile phones will not receive any concessions under the updated valuation ruling, in contrast to the advantageous conditions for foreign tourists. Further models will be added to the evaluation criteria, and duties and taxes will be assessed based on relatively higher customs values.
A thorough list of brands and models for determining duties and taxes is included in the FBR’s most recent ruling. The clearing collectorates are encouraged to evaluate models imported in commercial quantities that are not covered by the order by applying Section 81 of the Customs Act, 1969.
After that, a reference will be sent to the Directorate so that values can be finalised.
The new policy also attempts to lower the under-invoicing margin, namely in new and current branded mobile phone models. It is anticipated that this endeavour will improve openness and expedite the import mobile device appraisal procedure.
Divergent responses to FBR’s ruling
Different emotions have been generated by the FBR’s decision. While Pakistanis living abroad have expressed comfort at the higher depreciation rates, commercial importers continue to encounter difficulties due to higher customs values.
As interested parties consider the wider ramifications of the most recent valuation verdict, it will be interesting to observe how these modifications affect the mobile phone industry.
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 introduces tax concessions on phones for overseas visitors, offering up to 60% depreciation on used devices.){kind=link}