Pakistan’s government has collected at least Rs92 billion in advance tax from mobile phone users in the 2023-24 fiscal year, a 15% increase compared to last year, according to the finance ministry.
The ministry said this in the National Assembly on Monday in a report on tax advances paid by users over the past five years. In the previous fiscal year, Rs 80 billion was raised, while in 2022, Rs 61 billion, Rs 55 billion in 2021 and Rs 50 billion in 2020 were raised. The withholding tax collected from mobile phone users “is adjustable and allows consumers to claim income tax refunds”.
In the 2024–25 fiscal year budget, the government ended the ongoing sales tax regime for mobile phones, which used a weak price-based structure and had a nominal sales tax. The government imposes a flat 18% ad valorem sales tax on all mobile phones up to a value of US$500 in the three categories of imported fully manufactured, imported partially manufactured and locally manufactured fully manufactured.
