Massive tax hike on mobile phone imports
A new tax of up to Rs 16,000 has been proposed on the importation of mobile phones through the Finance Bill, 2022.
According to the finance bill, there will be a tax on mobile handsets with the tariffs specified on smartphones of different price categories.
According to the proposal, there will be a levy of Rs 100 per set on a mobile phone with cost and freight value (C&F) up to $30. The levy rate per package for mobile phones with a C&F value of $30 to $100 will be 200. The rate of levy for a mobile phone with a C&F value of $101 to $200 will be 600.
Likewise, the levy rate per set of mobile phones with a C&F value between $201 and $350 will be 1,800. The levy rate per set of mobile phones whose C&F value ranges from $351 to $500 will be 4,000.
The rate of levy per set on mobile phones having a C&F value between $501 and $700 will be 8000.
The levy rate per set of mobile phones with a C&F value of over $701 will be 16000.
The government estimated a tax of Rs 10 billion in tax on the importation of mobile phones.