The mini-budget presented by Finance Minister Asad Umar imposed new taxes on mobile phones. The amount of tax depends on the price of smartphone.
Tax was reduced on imported raw material, small & medium enterprises, agriculture sector and marriage halls while taxes were increased on expensive items.
The tax amount applicable on smartphones is as follows:
|Smartphone Price Range||Tax Amount|
|Rs. 10,000||Rs. 400|
|Rs. 28,000||Rs. 4,000|
|Rs. 60,000||Rs. 6,000|
|Rs. 105,000||Rs. 8,000|
|Rs. 150,000||Rs. 23,000|
|Above Rs. 150,000||Rs. 41,000|
Government reduced the tax rates for cheap mobile phones while it was increased for smartphones with higher prices.
Other prominent features of Finance Supplementary (Second Amendment) Bill of 2019 include:
- Introduction of interest-free credit (qarz-i-husna) of Rs. 5 billion
- WHT waived off for tax filers
- No WHT returns for Small businesses
- Tax reduced from 39% to 20% on income generated from agriculture sector, loans and low-income housing
- Marriage hall tax reduced from Rs. 20,000 to Rs. 5,000
- Investment in solar panels, wind turbines & Machinery for greenfield projects declared as tax exempted