Monday, September 25, 2023
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FBR Clarifies the Amendments to the Finance Bill 2020

The Federal Board of Revenue (FBR) made it clear on Wednesday that the FBR had not imposed any new sales tax of Rs250 per new SIM cell phone by amendments to the Finance Bill of 2020.

FBR sources informed Pak Revenue that the cell phone sales tax table was divided into two sections to support the local development of mobile phones and to charge them a reduced sales tax rate.

The two levels include sales tax at the CKD import level and sales tax at the local sales point. Under the 2020 Finance Act, the previous table was split into two tables without any adjustment in sales tax rates. The first category is the taxation of the product sales tax (payable at the point of purchase by the CMOs).

The second table specifies the sales tax rate for mobile phones in the form of CKD / CBU. Sales tax will be imposed on imports in CKD / SKD condition and sales tax will be imposed on the supply of locally produced cell phones in CBU condition. Moreover, there is no rise in sales tax rates on cell phones.

The FBR sources said that no such tax initiative has been taken to introduce a new SIM sales tax of Rs250 via the Finance Act of 2020. The news in this regard is false and without any legal protection.



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