Mini budget: Govt urged to withdraw 17% tax on mobile phones

KARACHI: Traders and businessmen have urged the government to withdraw 17 per cent sales tax imposed on mobile phones through the mini budget.

Karachi Electronics Dealers Association president Muhammad Rizwan in a statement said the additional tax on cell phones is tantamount to depriving people of their livelihoods.

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He was of the view that a mobile phone is not a luxury item but a public necessity. Besides, he said the tax on cell phones will also shrink means of online education.

On Thursday, Finance Minister Shaukat Tarin introduced in the National Assembly the Finance (Supplementary) Bill 2021 and the State Bank of Pakistan (SBP) Amendment Bill 2021.

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The finance bill proposes amendments in income tax, sales tax and federal excise duty to impose Rs375 billion taxation measures and withdraws the Rs343 billion sales tax exemption.

Mobile phones valuing more than $200 imported in the CBU condition has been taxed at 17 per cent sales tax.