The government has decided to increase Regulatory Duty (RD) on the imported mobile phones costing $60 or more may they be of any brand via the Finance Supplementary (Amendment Bill), 2018 with an approximated collection of Rs 4.4 billion from this measure during 2018-19.
After the Finance meeting, the senior officials told media that the government has suggested to increase in the rate of regulatory duty within the range of ten to twenty per cent on the import of costly mobile phones.
Mobile phones costing less than $60 would be charged with rupees two hundred and fifty regulatory duty like before.
The various new tax slabs that are expected to be introduced for applying RD include:
- Rs 250 per mobile phone
- 10 per cent RD for comparatively costlier phones
- 20 per cent RD for extremely costly phones
The government has already submitted the Finance Supplementary (Amendment) Bill, 2018 before the parliament, but the list of items on which the RD has been increased is yet to be submitted by the Finance Ministry.
Zahid Khokhar—the Member Customs of the Federal Board of Revenue (FBR), while conversing with the reporters said that higher duty would be applied on all costly mobile phones.
He further said that the government has decided to raise the regulatory duty on luxurious items at various rates with the aim of discouraging imports.
He said that they have made attempts to tackle the trade imbalance and to improve the balance of payment situation.
The government has applied RD on three hundred and twelve custom tariff lines (5-20 per cent) covering the luxurious and non-essential items and has enhanced RDs (10-15 per cent) on two hundred and ninety-five already present customs tariff lines.
Via the Finance Supplementary (Amendment) Bill, 2018, the government has raised the tax burden on some specific sectors like vehicles, mobile phones and tobacco, etc, and has withdrawn some tax incentives provided to businesses and individuals.
As per FBR, the RDs have been effective in keeping the stability of the present account position, promoting import substitution and the competitiveness of the local manufacturing sector.