ISLAMABAD: To create the Tax Fraud Investigation Wing-Inland Revenue, the Federal Board of Revenue (FBR) amended the Sales Tax Act 1990.
According to The News, this wing’s mission is to identify, look into, and stop tax fraud.
After parliamentary approval, the Federal Bureau of Revenue (FBR) released an amended version of the Federal Excise Duty (FED) 2005 and the Sales Tax Act 1990, valid until June 30, 2024.
The revised version states that the FBR will impose a 25% General Sales Tax (GST) on the import of satellite phones or mobile phones that have an import value greater than $500 per set, or the equivalent value in rupees if the manufacturer supplies the phone.
Mobile phones in Completely Built Unit (CBU) condition at the time of import or registration (IMEI number by CMOs) would be subject to a 25% sales tax.
If the phone’s value is less than $500, the FBR will impose an 18% sales tax (18% ad valorem).
When importing mobile phones in CKD/SKD condition and supplying locally made mobile phones in CBU condition, the sales tax rate would be 18% for both, provided the values do not exceed $500.
The new definition of “tax fraud” was included in the amended and revised version of the GST Act.
