Mobile phone prices in Pakistan have soared due to a recent tax increase. The Federal Board of Revenue (FBR) has revised the Sales Tax Act and Federal Excise Act, imposing a 25% sales tax on imported mobile phones valued over $500.
New tax rates are:
- 25% on high-value imported phones (over $500).
- 18% on imported phones valued at $500 or less.
- 18% on locally manufactured phones.
- 18% on CKD/SKD imported phones, regardless of value.
These changes, effective immediately, are intended to boost government revenue but are expected to significantly affect consumers and the market.