ISLAMABAD: The Federal Board of Revenue (FBR) has increased the depreciation allowance on the used and refurbished mobile phones brought into the country by overseas Pakistanis, implementing changes in its valuation ruling.
Under the Valuation Ruling Number 1834 of 2023 by the Directorate of Valuation Karachi, the depreciation charges for used and refurbished mobile phones have been increased from 30% to 60% for the assessment of duties and taxes.
The ruling means that international travelers, particularly overseas Pakistanis, can import phones up to 5 years old at lower values, saving them money and reducing the burden of taxation.
However, the commercial importers will not get any relief from the decision and would have to pay taxes and duties on comparatively higher customs values.
Under the new ruling, the used and refurbished cell phones imported by bonafide passengers shall also be assessed on the customs values as allowance for their depreciation is also incorporated in the tabulated values.
List of Mobile Phones
The ruling includes a big list of models and brands for assessing taxes and duties.
The ruling also intends to end the practice of under-invoicing, which involves declaring lower values for imported items to evade taxes. It stated that the valuation methods should be uniform and consistent and that the declared value should be accepted unless there is clear evidence of misdeclaration.
The Federal Tax Ombudsman had directed the FBR that the appropriate depreciated value of used cell phones based on physical condition and model should be applied in order to prevent unwarranted overcharging.
The FBR should also ensure the application of uniform and consistent valuation methods, giving full consideration to the declared value unless there is clear evidence of misdeclaration, the FTO order said.
