The Federal Board of Revenue (FBR), while taking a biased step has re-imposed activation tax on mobile phone SIMs once again. The latest SRO 480(I)/2013 released on May 30, 2013 duties have been reduced on mobile phone import whereas the burden has been shifted on the cellular operators who have been crying against the tax of Rs. 250 for the past many years.
According to the new SRO, definition of mobile phones have divided into three categories, low priced, medium priced and smart cellular phones. Rs. 150 will be charged on import of low priced phone. Similarly Rs. 250 and Rs. 500 will be charged on import of medium and smart cellular phones respectively.
Earlier, the sales tax collection on such phone was Rs500 per set.A new category with medium priced mobile phones was introduced to reduce the rate of sales tax to a maximum on those mobiles. These phones will have 2.1 to 10 mega-pixels one or two cameras, between 2.6 inches and 4.2 inches screen size and less than 2 GHZ micro-processor.The rate of duty now reduced to Rs 250 on import stage, while a similar amount will be collected on supply of medium priced mobiles at the time of sale or activation of SIM Card. Such mobiles earlier attract Rs 1000 per set which is now reduced to Rs500.The smart cellular phones or satellite phones will fall in the third category. These phones will have 10 mega-pixels and above one or two cameras, 4.2 inches and above touch screen size, 4 GB or higher basic memory, operating system of the type iOS, Android V2.3, Android Gingerbread or higher, Windows 8 or blackberry RIM and 2 GHZ or higher, dual core or quad core micro-processor.The rate of sales at import stage of the third category will now be Rs500 in addition of Rs 250 on supply of these mobiles at the time of sale or activation of SIM Card.
