The Federal Board of Revenue (FBR) has announced a facility on Wednesday to pay sales tax on imported mobile phones in easy instalments.
The government had previously abolished the duty-free mobile phone allowance for travellers in July 2019.
Will FBR allow payment of sales tax in instalments?
According to details, the FBR has formally approved the payment of sales tax in instalments for mobile phones imported from abroad or brought in for personal use.
This move comes two months after the Pakistan Telecommunication Authority (PTA) announced its tax instalment program.
Amendment to Ninth Schedule of Sales Tax Act, 1990
A circular issued by the FBR states that this facility has been introduced through an amendment to the Ninth Schedule of the Sales Tax Act, 1990.
Under the new procedure, citizens will be able to pay the sales tax on their devices in easy instalments rather than in a lump sum.
However, full payment of all outstanding taxes must be completed before the end of the relevant fiscal year. This facility will be enabled through the PTA’s DIRBS system.
It is also worth noting that the government withdrew the duty-free mobile phone allowance for travellers in July 2019.
After this, the upfront payment of all duties and taxes became mandatory to operate mobile phones on local networks.
This new decision by the FBR will provide significant financial convenience and flexibility to citizens bringing mobile phones from abroad.
What changes were made to the tax return form?
The changes were made only a few weeks before the legal deadline for filing tax returns.
According to the FBR, the changes were introduced through SRO 1495(I)/2026. The notification has made changes to the Income Tax Rules 2002.
Under the changes, new sections have been added to different parts of the Second Schedule. These include Part-II-ZE, Part-II-ZF, Part-II-ZG and Part-II-ZH.
The FBR said the changes will apply to the income tax return system for tax year 2026.
