The Tax Laws (Second Amendment) Ordinance, 2021, added locally made mobile phones to the list of goods subject to a 0.25 percent “minimum tax” starting March 22, 2021.
FBR officials claim that under section 113 of the Income Tax Ordinance 2001, dealers, wholesalers, and retailers of fast-moving consumer goods, fertilisers, sugar, cement, and edible oil are subject to a 0.25 percent minimum tax, subject to certain conditions.
The Tax Laws (Second Amendment) Ordinance, 2021, has now added locally made mobile phones to the list of items eligible for a 0.25 percent reduced rate.
According to sources, under the Tax Laws (Second Amendment) Ordinance, 2021, the government has also eliminated income tax exemption on profits and gains arising from an industrial undertaking, properly approved by the Pakistan Telecommunication Authority, engaged in the manufacturing of cellular mobile phones, for a period of five years.
The Pakistani government previously paid a 1.5 percent turnover tax, according to Mian Abdur Rehman, Chairman of the Pakistan Mobile Phone Manufacturers Association, in a video message. They’re just allowed to charge 0.25 percent now.