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The Federal Board of Revenue (FBR) has raised the depreciation allowance on used or refurbished mobile phones imported by overseas Pakistanis. As per the updated Valuation Ruling Number 1834 of 2023, the depreciation rates for these mobile phones have been increased from 30 percent to 60 percent for the assessment of duties and taxes. This adjustment is expected to benefit international travelers, especially overseas Pakistanis, allowing them to import phones up to five years old at lower values, thus reducing the tax burden.
However, it’s important to note that commercial importers will not receive the same relief and will continue to pay duties and taxes based on comparatively higher customs values. The ruling provides a detailed list of brands and models for assessing duties and taxes, with a specific focus on preventing under-invoicing practices. The FBR aims to ensure consistent and uniform valuation methods and will accept the declared value unless clear evidence of mis-declaration is present. The move is also in response to directives from the Federal Tax Ombudsman (FTO), emphasizing the application of appropriate depreciated values for used mobile phones to prevent overcharging.
