FBR Decreases Phone Taxes for Overseas Travellers

The commercial importers of new mobile phones would not avail of any concession under the new valuation ruling. In contrast, incoming international passengers especially overseas Pakistanis would now avail depreciation up to 60 percent on used/refurbished mobile phones. The new valuation ruling number 1834 of 2023 of the Directorate of Valuation Karachi has facilitated overseas Pakistanis. However, the commercial importers engaged in the import of new mobile phones would have to pay duties and taxes on comparatively higher customs values. Several new models have been added in the new ruling for the purpose of assessment of duties and taxes. The ruling has not provided facilities to the commercial importers whereas the overseas Pakistanis would get some relief. Under the new ruling, the used/refurbished mobile phones imported by bonafide passengers shall also be assessed on the customs values given as allowance for their depreciation is also incorporated in the said tabulated values. For assessment of brands and models that are imported in commercial quantity but are not included in the enclosed annexure, the clearance Collectorates are advised to assess those under Section 81 of the Customs Act, 1969, and then forward a reference to the Directorate for final determination of values thereof, the ruling added. According to the sources, overseas Pakistanis would benefit from the ruling due to increased depreciation rates. The depreciation has been increased up to 60 percent on phones up to five years old brought by the incoming international passengers. However, the commercial importers would not enjoy any relief from the new ruling. The new models of mobile phones would be imported at higher values than less old phones. Under the policy, the margin of under-invoicing would be decreased in the existing and new models of branded mobile phones.