Tax regime for smartphones
ISLAMABAD: The federal government did not change the existing tax regime for smartphones in the next budget for 2023-24, starting from July 1, 2023.
Taxes and duties on imported and locally-produced smartphones, etc., will remain the same.
It means the prices of locally-made and imported mobile phones would remain the same.
Before the announcement of the new budget, some TV channels and digital media entities indicated the possibility of an increase in taxes on the import of smartphones.
However, on Friday the chairman of the Federal Board of Revenue gave a media briefing to journalists about changes in the taxation measures for 2023-24.
He did not mention any change in the tax regime involving the smartphones and Pakistan Telecommunication Authority.
New Tax Measures for 2023-24
Chairman of the FBR Asim Ahmed told the media that the federal government has proposed some tax measures in the budget which will generate around 900 billion rupees in additional revenue in 2023-24.
In the 2023-24 budget, the government proposed 223 billion rupees in new tax measures.
Additionally, in Feb 2023, the government imposed 170 billion rupees in taxes through the mini-budget. However, in the 2023-24 budget, the impact of the mini-budget will mop up around Rs660 billion in 2023-24.
Therefore, the overall tax revenue impact of measures including the mini-budget would be more than Rs900 billion in 2023-24.
The new tax measures are the imposition of the super tax on the superrich individuals with more than 150 million rupees per annum income. Also, non-filers will pay a 0.6 percent withholding tax on the withdrawal of cash from banks.
Meanwhile, in the new budget, the government has reimposed a 10 percent withholding tax on bonus shares and supplies to be provided by contractors.
The new tax measures will enable the government and the FBR to achieve the 9.2 trillion rupees tax collection target in 2023-24.
Moreover, under the Finance Bill 2023, the government has imposed additional tax at the rate not exceeding fifty percent on income of profit and gains of a person or class of persons on account of extraordinary gains due to exogenous factors.
When the federal cabinet approved the budget, FBR Chairman Asim Ahmed told the media that 28 percent growth is required in tax collection to meet the target of Rs 9.2 trillion in 2023-24.
Asim pointed out that the revenue impact of (additional tax on certain income, profits, and gains) cannot be considered a new tax, but an enabling provision introduced in the law.
