FBR Declares No New Sales Tax on SIM Cards

New Sales Tax on SIM Cards

The Federal Board of Revenue (FBR) has mentioned that there is no new sales tax on the SIM cards. As per FBR, it has not imposed any new sales tax of Rs.250 per new SIM card via the changes made to the Finance Bill 2020.

According to a senior official the sales tax table on mobile phones had been divided into 2 parts for promoting the local manufacturing of the cell phones and charging a decreased rate of sales tax on them.

The two stages encompass the sales tax at CKD form import and the sales tax at the stage of local sales.

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Under the Finance Bill 2020, the earlier table has been divided into 2 tables without any changes to the rates of sales tax.

The first category is the implementation of the sales tax on the supply, which is to be paid at the time of supply by the CMOs.

Sales tax of Rs.250 is to be paid on the SIM cards on the supply.

The second category mentioned the sales tax rates on mobile phones in CKD/CBU form.

The sales tax would be charged on the import in CKD/SKD condition and the sales tax would be charged on the supply of the locally made cellular devices in the CBU condition.

But there is no change made to the sales tax rates on the mobile phones.

No such taxation step has been taken for the implementation of a sales tax of Rs.250 per new SIM via the Finance Act, 2020. The news about the matter is baseless and is without any legal support, as informed by the official.

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