Advertisement

Rs92 Billion Collected in Mobile Phone Taxes, 15% Increase in FY 2023-24

Advertisement

Pakistan’s government collected Rs92 billion in advance taxes from mobile phone users during the fiscal year 2023-24, marking a 15% rise compared to the previous year, as reported by the finance ministry.

This figure was revealed in a report on the advance taxes collected over the past five years, presented to the National Assembly on Monday.

In the last fiscal year, Rs80 billion was collected, following Rs61 billion in 2022, Rs55 billion in 2021, and Rs50 billion in 2020.

The advance tax collected from mobile users “is adjustable, allowing consumers to claim refunds in their income tax returns,” the report stated.

In the budget for the fiscal year 2024-25, the government eliminated the existing slab-based sales tax system for mobile phones. This system, which varied according to pricing, had nominal sales tax rates. The government has now introduced a flat 18% ad valorem sales tax on mobile phones valued up to $500, covering imported fully assembled, imported semi-assembled, and locally manufactured phones.

For mobile phones priced above $500, the sales tax rate has been set at 25% for fully assembled imports and 18% for semi-assembled imports and locally manufactured phones.

“Concessionary rates create distortions by only benefiting some specific items in the market, while the standard rate ensures that everyone gets equal opportunity and market forces work effectively,” the finance minister said during his budget speech on June 12.

Advertisement
News Desk

Recent Posts

Unmissable events in Dubai this June for Pakistani visitors

Dubai has long been a favourite destination for people from Pakistan, offering a vibrant mix…

2 days ago

Bank Alfalah partners with IBA and PAQI to launch Karachi’s first scientific Emissions Inventory Report

Marking World Environment Day, Bank Alfalah, in collaboration with the Pakistan Air Quality Initiative (PAQI)…

2 days ago

Karachi Fault Line Active as City Experiences Multiple Earthquakes Over Two Days

Karachi has been rattled by a series of low-intensity earthquakes over the past two days,…

4 days ago

AI with a Human Touch: The Next Step for Pakistani Banking Industry

No one likes standing in long lines, filling endless forms, or waiting days for a…

5 days ago

Government Weighs Income Tax Cuts, Pay Hikes, and Sector Relief in Budget 2025–26

The federal government is reviewing a series of relief proposals aimed at easing financial pressure…

5 days ago

Emirates Pakistan and Consulate of Italy Ink Partnership to Enhance Diplomatic Travel and Cultural Exchange

Emirates, the world's largest international airline, has signed a Memorandum of Understanding (MOU) with the…

5 days ago