18% Sales Tax Proposed on Imported Kits and Locally Produced Phones

The federal government has proposed an 18% sales tax on the import of mobile phone assembly kits and the local supply of mobile devices, according to the budget speech. The existing tax rate is set at Rs. 10 per mobile device and the fixed tax rate on import of mobile phone assembly kits ranges between Rs. 10 per kit to Rs. 9,270 per kit depending on their price. But now the govt has proposed a tax of 18%, which is expected to enhance revenue by Rs. 33 billion. Today at 4 PM, Finance Minister Muhammad Aurangzeb will present the federal budget for 2024-25 in parliament. The proposed budget is set at Rs. 18.9 trillion, with a projected deficit of Rs. 9.8 trillion for the upcoming fiscal year. Of the total budget, Rs. 9.7 trillion is allocated for interest payments on loans and other financial obligations. The Federal Board of Revenue (FBR) is targeting a tax revenue goal of around Rs. 12.97 trillion. Additionally, the federal Public Sector Development Program (PSDP) is slated to receive approximately Rs. 1.5 trillion for various development projects. For live updates on everything about the Federal Budget, visit this link.