PTA Tax Filing Mastery Unleased: Big Rise in Sales Tax from 17% to 18%

pta tax filing

As per PTA tax filing regulation, all mobile phone devices that are operated on the local cellular network must be registered with the Pakistan Telecommunication Authority (PTA). The purpose is to block the smuggled mobile phones from being used in Pakistan. Effective December 1, 2018, PTA has launched the system named DIRBS (Device Identification Registration and Blocking System) for the purpose to just allowing the compliant devices to be operated on local mobile networks in Pakistan and blocking the non-compliant devices.

A procedure has been laid down for importers and international passengers for registration of the devices along with the PTA tax filing requirements to be fulfilled for the imported phones to be used on a local mobile network in Pakistan.

For a better understanding of the tax regime in Pakistan, please read the Ultimate Guide to FBR Tax Return.

Why PTA Registered Mobile Phones

  • In Pakistan, all phones to be operated on local mobile network must be approved by PTA
  • Difference amount of taxes are imposed on different brands of imported mobiles on the basis of their fair market price and resident status of the owner

Procedure for Imported Phones for PTA Tax Filing

In the case of imports, the imported cell phone information submitted by the applicant will be verified/processed by WeBOC and cleared with applicable duties and taxes. The payment so be made through PSID generated which can be paid in banks or ADCs.

indirect tax grocery

Procedure for Registering Phones Carried by International Travelers

indirect tax grocery

For international travelers, PTA has provided a web-based user interface for registration of the mobile phone and payment of duties and taxes thereon for phones imported in accompanied baggage.  The system will require the Passport Number, CNIC number, and the Mobile IMEI (International Mobile Equipment Identification) number which is a 15-17 digit code comes with every phone.

The submitted information will be validated by WeBOC with admissible allowance under baggage rules. A PSID for the applicable tax will generated for onward deposit to the bank or ADC channel. The said phones to be registered within 60 days of brought-in accompanied baggage to Pakistan. Failing to register within 60 days, the duty and tax will be paid along with the prescribed fine and the baggage-free allowance will not be available.

Procedure for Registering Phones by Local Applicants

The user will enter the CNIC and IMEI of the device on the web-based utility, which then generates the PSID for duty, taxed, and prescribed fine. Upon payment of PSID, the system will whitelist the device.

Procedure for Registering Phones Imported by Local Individuals via Postal/Courier Services

All such mobiles will be released after the production of COC (Certificate of Compliance) issued by PTA. The individuals can apply of COC to customs authorities. After the issuance of COC, the applicable tax and duties will be paid by the applicant and the device will be whitelisted.

Procedure for Registering Phones Imported Illegally through Informal Channels by Local Trader

The trader will voluntarily approach the customs office and submit a declaration along with details of IMEI along with the devices. He is then required to request a COC. All such mobiles will be released after the production of COC (Certificate of Compliance) issued by PTA. After the issuance of COC, the applicable tax and duties will be paid by the applicant and the devices will be whitelisted.

Mobile Phones Duty and Taxes Rates 2023-24 under PTA Tax Filing regime

In budget 2023-24, the government has not introduced new taxes on the locally assembled mobile phone. While the following taxes and duties are levied on imported phones. You may check the PTA Tax IEMI number from the WeBOC site.

Duty and Taxes on Imported Phones 2023-24 under PTA Tax Filing regime

IT Duty – 9.00%
Provincial Tax – 0.90%
Withholding Tax
Regulatory Duty
Sales Tax
Mobile Levy
Sales Tax Ad Valorem

FBR is recovering the tax on imported phones depending upon their fair price. A fair price gird is devised by FBR for different models of different companies. In FY 2021-2022 17% Sales Tax Ad Valorem was being charged with a fixed amount of base rate for different price ranges of the mobile phones.

RATE OF DUTY AND TAXES ON MOBILE PHONES (2021-22) – WITH PASSPORT APPLIED WITHIN 60 DAYS OF ARRIVAL IN PAKISTAN
RATE OF DUTY AND TAXES ON MOBILE PHONES (2021-22) – APPLIED WITH CNIC

FAQs

  • Register by creating an account on the Device Identification Registration and Blocking System (DIRBS) portal
  • Request for a COC (Certificate of Compliance)
  • Enter the International Mobile Equipment Identity (IEMI) of the devices
  • Pay Moblie Tax via ADC Channels, ATM, Jazz Cash Etc

The tax e-payment slip generated can be deposited to any bank including NBP and SBP. The PSID now can be paid through ADC channels of the banks like ATMs, Bank Mobile Applications or other Mobile Wallets.

Simply dial *8484# from the mobile phone and follow the instructions to get the required PSID. The same can be generated from the DIRBS portal.

The PTA Tax can be calculated with the mobile phone price, the IT Duty, Provincial Tax, Withholding Tax, Regulatory Duty, Sales Tax, and Mobile Levy. The resident status of the person is also an important factor in calculating PTA.

Conclusion

Pakistan Telecommunication Authority (PTA) has deployed the Device Identification Registration and Blocking System (DIRBS) to regulate the use of imported mobile phones on local networks. The PTA tax filing defined procedures for imported phones, those carried by international travelers, and devices registered by local applicants or imported through different channels.

The importers and international travelers should follow the specific registration processes and meet PTA tax filing requirements to comply with the rules and regulations. The 2023-24 budget outlines duty and tax rates for imported phones based on their C&F value.

Obtaining a Certificate of Compliance (COC) is essential for local imports or informal channels, with applicable payment of taxes for whitelisting. PTA aims to ensure just compliant and lawful mobile phone usage in Pakistan.

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