The proposal to increase taxes on income-generating mobile phones has been presented in the federal budget for the next fiscal year. This includes raising federal excise duty, sales tax (GST), and also proposing an increase of up to 25% in GST on income-generating mobile phones.
According to sources from the Federal Board of Revenue (FBR), the proposal includes imposing federal excise duty on income-generating mobile phones, while an overall estimate of revenue from income-generating mobile phones is being calculated.
Similarly, there is also a proposal to increase the sales tax on income-generating luxury mobile phones, while up to 25% General Sales Tax (GST) is proposed on income-generating mobile phones. Additionally, the upcoming finance bill includes a proposal to further increase GST on income-generating mobiles.
Sources further state that due to the existing 25% GST, further increasing GST is challenging. New revenue measures worth Rs. 2 trillion will be taken for the first time in history.
