WHAT COUNTRIES HAVE NO INCOME TAX?
January 17, 2020
TAX GROWTH IN FIRST SIX MONTHS
January 23, 2020REDUCTION OF TAXES ON IMPORT OF SMART PHONES BY FBR
NOTABLE DECREASE OF TAXATION ON IMPORT OF SMARTPHONES
The Federal Board of Revenue (FBR) has published a description of the FBR news item issued in some sections of the press. Federal Board of Revenue has explained that according to Government’s Digital Pakistan Initiative, taxation of sales also Income Tax at the import stage have been significantly decreased in the matter of smartphones of Rs. 15,000 or less than that. The State of Pakistan is however cognizant of the fact that local manufacturers might need some protection to provide them an even playing field in the market and to encourage local manufacturing of smartphones in Pakistan. In this respect, a commission under the leadership of Advisor toward Commerce, Textile, Industry & Productions and Investment Mr. Abdul Razak Dawood is previously serving. The ultimate conclusion in this consideration will be taken by the Economic Coordination Committee (ECC) after negotiating all the stakeholders.
According to the news of the Federal Board of Revenue (FBR) It is intending to conquer regulatory duty (RD) on imported phones by up to 50 percent.A summary has been sent to the ministry of Finance in this regard. It says that the move is directed at giving support to the poor man.FBR understands that accomplishing so will not affect the overall collection as lesser duties will help people to import more mobiles in Pakistan.“This decrease in duty/taxation is presumed to increase import volume of the smartphone in Pak,” the summary said, adding that it will compensate the unless the negative influence of this measure to some extent.
FBR NEWS TO DECREASE TAXES ON IMPORTED MOBILE PHONES BY 50 PERCENT
Federal Board of Revenue pitched an approach to lower the regulative duties by 50 percent in anticipation of continuing the digitization method, though; it can balance the local assembly businesses of smartphones that are at advanced stages of the production process. Federal Board of Revenue (FBR) is thinking to cut the regulatory duties on the imported phones by 50%, a move purely taken to provide relief to the common man and thrive digitization process in Pakistan, asserted Federal Board of Revenue.Ministry of Finance is optimistic that a reduction in regulatory duties will not cast a significant impact on the overall collection since lower prices will encourage the dealers to import a higher number of phones. “This is a decrease in duty or taxation is assumed to raise import quantity of mobiles in Pakistan,” stated the report approved by Chairman FBR Shabbar Zaidi. Adding that this may “to some extent, neutralize the differently negative influence of this measure.” While the reduction in duties has already been proposed in May’s budget.The highest reduction will be seen on the mobile handsets with a cost freight value of in-between $100 to $200, on which the existing duty of Rs.2430 will be pulled down to Rs.1200.Furthermore, the regulative duty on smartphone’s value within $200 and $350 has been slashed by Rs.740. While up to Rs. 4500 will be limited on phones ranging above $350 and under $500
The decrease in regulative duties is going to be a disincentive for local assembly and corporations who are in the exceptional stages of setting up the local mobile phone assembly factories in Pakistan. The manufacturing policy is being finalized by the Commerce Minister Razzak Dawood in collaboration with the Engineering Development Board. The assembly of mobile phones is a potential market moved out of China, laying opportunities for other countries to attract investment in this sector.
