Premium Smartphones tax to Get More Expensive Following Budget 2024-25

Smartphones tax

According to the Finance Bill 2024, the sales tax on smartphone imports and IMEI registration will now be 25% ad valorem for smartphones valued above $500. This new tax rate targets high-end and premium smartphones.

However, the 25% rate only applies to fully assembled smartphones valued above $500. Partially assembled or unassembled handsets will continue to be taxed at an 18% rate, even if their value exceeds $500. The same 18% rate applies to locally manufactured and supplied smartphones.

For mobile phones valued below $500, a flat 18% rate will be applied to fully assembled, partially assembled, and unassembled smartphones, as well as locally supplied handsets. This change is expected to generate an additional Rs. 33 billion in revenue.