Tax imposed on sale, activation of sim cards


Tax imposed on sale, activation of sim cards

ISLAMABAD  - The Federal Board of Revenue (FBR) on Friday imposed tax on the sale and activation of sim cards while reducing the tax on cell phone import.

In a move that is likely to attract consumers’ flak, the FBR imposed a sale tax of Rs250 on sale or activation of cell phone sim. The amount will be collected at the time of sale or activation of a sim.

According to the notification issued by the FBR, no sim will be sold or activated by a cellular company operator without charging Rs250 sales tax.

The cellular company operators shall, if not already registered, obtain registration under the sales tax act 1990. The liability to charge, collect and pay the prescribed amount of sales tax shall be on the cellular company operator who shall deposit the amount through a monthly tax return in terms of section 26 of the Sales Tax Act 1990.

The notification states that the cellular company operator shall maintain proper recorded of all sims sold or activated for a period of three years, and such records shall b produced for inspection, audit or verification to the authorities. “No adjustment of input tax shall b admissible to the cellular company operator or the buyer against the sales tax chargeable and payable under this notification.”

On the other hand, the FBR has reduced the taxes on the import of cell phones. According to the notification, the FBR imposed Rs150 tax on low priced mobile phones with specifications: Camera, 2 mega-pixels or less and screen size 2.6 inches or less and having keypad. The FBR levied a tax of Rs250 on medium priced mobiles that have one or two cameras between 2.1 and 10 mega-pixels, screen size; between 2.6 inches and 4.2 inches and microprocessor; less than 2 GH.

Similarly, the Rs500 tax has been on smart cellular phones with one to two cameras of 10 mega-pixels or above, touch screen of 4.2 inches or above, 4GB or higher basic memory, operating system; iOS, android, V2.3, android gingerbread or higher, window 8 or blackberry RIM and microprocessor; 2 GGHZ or higher, dual core or quad core.

Meanwhile, the caretaker government on Friday jacked up petrol price by Rs2.18/litre, slightly slashing rates of other petroleum products. New prices got effective from midnight.

A notification to this effect was released on Friday evening after the Ministry of Petroleum & Natural Resources gave approval to revision in oil prices, under the monthly oil price review mechanism, proposed in a summary received from the Oil and Gas Regulatory Authority on Thursday.

With effect from government’s decision, new price of petrol will be Rs99.77 per litre after a hike of Rs2.18 per litre, light diesel oil – used for industrial purposes – Rs89.13 with an increase of Re0.7 per litre.

Price of high speed diesel – used mainly in transport and agriculture sectors – will reach Rs104.6 after a cut of Rs1.46 on per litre. Likewise, price of kerosene oil – used as fuel in remote areas where liquefied petroleum gas is not available – has gone down by Re0.38 making availability of commodity at Rs93.79 per litre in the open market.

Last month, the interim government reduced rates of petrol and diesel by 4.6pc and 2.32pc, respectively, to pass on to consumers the impact of lower international prices, neglecting recommendations by regulator for up to 7.2 per cent cut in oil prices.

The government had also increased petroleum levy on almost all oil products to earn higher revenue and also protected comparatively higher GST on them.

Courtesy:  Nation