All imported smartphones inlcuding Apple iPhones are set to become more expensive after Budget 2024-25.
The PML-N led alliance government introduced new taxation policies that will significantly impact the prices of these devices. With the goal of boosting local manufacturing and reducing the trade deficit, this FY budget includes higher duties on imported devices.
In finance bill 2024, the sales tax on imported smartphones and IMEI registration has been increased to 25percent ad valorem for smartphones priced above $500 (Rs139,500).
This higher tax rate applies only to fully assembled smartphones above this price threshold. Partially assembled or unassembled handsets will continue to be taxed at an 18% rate, regardless of their value. Locally manufactured and supplied smartphones will also be taxed at the 18% rate.
For smartphones priced below Rs139,500, 18percent tax rate will be applied, irrespective of their assembly status or origin. This change is expected to boost revenue by Rs. 33 billion.
