In budget 2019-20 Federal Government has decided to remove 3percent value addition tax on mobile phones import. Minister of State Revenue Hammad Azhar presented the Fiscal Year Budget 2019-20 on Tuesday in National Assembly Islamabad, he stated that Federal Government had the responsibility to handle the situation with appropriate measures, keeping in view the immediate risks and took few steps to strengthen economic stability. During the Budget session in NA, the minister said the year 2019-20 shall continue to be the period of stabilization, which he described as “A DIFFICULT TRANSITION” to achieve within a minimum amount of time.
TAX ABOLISHED ON MOBILE PHONES IMPORT
Hammad said that at the present situation 3percent Value addition is imposed on mobile phone imports, due to which the tax burden has become unnecessary. Further, he said added in Budget 2019-20 Government has been proposed to remove the 3% value addition tax on mobile phones import which will reduce the taxes imposed on mobile phones import.
The Minister of State said that our goal is to make value-added tax rates more stable and to ensure an effective but fear-free tax complex. Remember that, the Federal Government of Pakistan Tahreek-i-Insaf (PTI) presented its first Fiscal budget for the year 2019-20, during which opposition was protested in the National Assembly against Budget and Prime Minister Imran Khan.
In April last year, the former government of Pakistan Muslim League Nawaz (PML-N) presented the federal budget for the fiscal year 2018-19 with a total outlay of Rs: 5.9 trillion. The tax revenue target was Rs: 4.435 trillion whereas the Gross Domestic Product (GDP) growth rate target was fixed at 6.2%. Rs: 1.1 trillion was allocated for Defence Sector.