Imported mobile phone sales tax can now be paid in easy instalments

FBR approves instalment facility

The Federal Board of Revenue (FBR) has approved a facility allowing citizens to pay sales tax on mobile phones brought from abroad for personal use in instalments. The decision aims to make tax payments easier for people bringing imported phones into Pakistan.

The move comes two months after the Pakistan Telecommunication Authority (PTA) announced its tax instalment programme. The FBR has now formally approved the facility through changes to the relevant tax rules.

Changes under sales tax law

According to an FBR circular, the facility has been added through an amendment to the Ninth Schedule of the Sales Tax Act, 1990. The amendment provides a legal basis for allowing instalment payments on eligible imported mobile phones.

Under the new procedure, citizens will not have to pay the entire sales tax in one payment. However, all outstanding tax must be paid before the end of the relevant financial year.

PTA system to manage payments

The instalment facility will be activated through the PTA’s Device Identification, Registration and Blocking System (DIRBS). The system will be used to manage the payment process for eligible devices.

The new arrangement is intended to provide greater financial flexibility to people who bring mobile phones from abroad. Citizens will still be required to meet the applicable tax and registration requirements.

Background of mobile phone taxes

The government ended the free mobile phone facility for travellers in July 2019. Since then, advance payment of applicable duties and taxes has generally been required for using imported phones on local mobile networks.

The FBR’s latest decision changes the payment arrangement by allowing eligible users to pay sales tax in instalments. The facility may help reduce the immediate financial burden on citizens bringing phones from abroad for personal use.

The instalment facility gives eligible mobile phone users more time to manage their tax payments. However, they must complete all required payments within the specified financial year to remain compliant with tax rules.

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