FBR may raise tax on mobile phones, imported vehicles

ISLAMABAD: The Federal Board of Revenue (FBR) is likely to increase the tax on mobile phones and imported vehicles in the proposed mini-budget.

These taxes will be imposed due to the conditions of the International Monetary Fund (IMF), after the government withdraws tax relief worth Rs350 billion on multiple products, which includes mobile phones and imported vehicles.

A proposed mini-budget from the FBR to converse tax relief has been directed to the law department for an inspection procedure before presenting to the Cabinet for approval, sources said.

It is predicted that around 17 per cent general sales tax will be applied for all the sectors that were previously exempted from the taxes.

The food items and medicines will remain exempted, the sources added.

Pakistan has to implement the proposed tax exemptions reversal before the IMF meeting on January 12, 2022.

“The Pakistani authorities and the IMF staff have reached a staff-level agreement on the policies and reforms needed to complete the sixth review under the EFF,” a statement issued by the IMF said.