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October 16, 2019
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Govt restructures regulatory duty on import of mobile phones

ISLAMABAD: The government has restructured the regulatory duty on import of mobile phones in a bid to lower duty on ordinary phones.

The government introduced regulatory duty in flat rates for six different slabs according to the import value of mobile phones.

The government will now charge Rs1,800 as regulatory duty on handset costing up to $30 while the duty on mobile phones valuing up to $500 will be charged at the rate of Rs 18,500 per set.

Previously, the regulatory duty on import of mobile phones valuing up to $60 was Rs250 per set, while it was 10 per cent and 20pc of the import value for those with a price ranging between $60 and $130 and those valuing more than $130, respectively.

The change in the regulatory duty structure made through the Finance Sup­plementary (Amend­ment) Bill 2018 will help in the collection of maximum revenue by facilitating fair assessment of mobile phones at the import stage.

The import of mobile phones came under strict regime following reports of duty-free imports in passenger baggage and its subsequent selling in the open market. To check this as well as smuggling of mobile phones, the government introduced a separate mechanism of duty payments for registration.

Earlier in May 2018, the Pakistan Telecommunica­tion Authority had launched the Device Identification, Registration and Blocking System mechanism to counter rampant smuggling of substandard and used phones into the country.

The government through a notification (SRO327 of 2019) introduced six slabs for regulatory duty on import of mobile phones with immediate effect.