"FBR Reduces Taxes on Mobile Phones"

 

The directorate has introduced a new regulation, referred to as Valuation Ruling No. 1834/2023, replacing a regulation issued nine months ago. This ruling specifically addresses the valuation of mobile phones under Section 25-A of the Customs Act, of 1969.

As outlined in the official document, the valuation process involved a comprehensive examination of various markets to determine the actual prices of mobile phone devices. The values of these goods have been recalculated based on the data collected during this exercise, utilizing the provisions of sub-Section (7) of Section 25 of the Customs Act, 1969.

A significant change in the new valuation is the allowance for overseas Pakistanis to claim depreciation of up to 60 percent on used or refurbished mobile phones. This means that when calculating customs duties for such phones, their value will be considered to have decreased by 60 percent due to their used or refurbished condition.

Furthermore, the customs values for used or refurbished mobile phones imported by 'bonafide passengers' will be assessed based on tabulated values that include depreciation allowances.

It's important to clarify that the revised customs valuation does not extend its provisions to cover importers of mobile phones, as specified by the directorate. Therefore, these changes primarily apply to individual users or 'bonafide passengers' importing used or refurbished mobile phones, granting them specific allowances for depreciation in customs assessments."