Friday, April 19, 2024

Locally Manufactured Smartphones to Have Minimum Taxes

From March 22, 2021, the Tax Laws (Second Amendment) Ordinance, 2021, has added locally produced cell phones to the list of products subject to a reduced rate of 0.25 percent “minimum tax.”

Dealers, wholesalers, and retailers of fast-moving consumer products, fertilizers, sugar, cement, and edible oil are subject to a 0.25 percent minimum tax under section 113 of the Income Tax Ordinance 2001, subject to certain conditions, according to FBR officials.

Locally produced cell phones have now been added to the list of products subject to a 0.25 percent reduced rate under the Tax Laws (Second Amendment) Ordinance, 2021.

According to reports, the government has also removed income tax exemption on profits and gains arising from an industrial undertaking, properly licensed by the Pakistan Telecommunication Authority, engaged in the manufacturing of cellular mobile phones, for a period of five years under the Tax Laws (Second Amendment) Ordinance, 2021.

In a video message, Mian Abdur Rehman, Chairman of the Pakistan Mobile Phone Manufacturers Association, said the Pakistani government previously charged a 1.5 percent turnover fee. They can now just charge 0.25 percent.

Related Articles

Latest Articles