KARACHI: In a bid to increase revenue and meet targets, Federal Board of Revenue (FBR) has announced another amnesty scheme, this time to legalise seized smuggled mobile phones with no fine at all.
However, such smuggled mobile devices will subjected to leviable duty and taxes.
Vide S.R.O 145(1)/2018, the Federal Board of Revenue (FBR) has directed that mobile devices [with SIM or IMEI functionality] brought into Pakistan in violation of the provisions the Customs Act, 1969, i.e. smuggled phones, which have been seized or voluntarily presented to Customs authorities on or before the 31. December 31, 2018 are allowed release on payment of applicable duty and taxes payable thereon with imposition of zero fine.
The amnesty scheme for the legalization of smuggled and illegally imported mobile phones was discussed during the visit of Finance Minister Asad Umar to Federal Board of Revenue (FBR) in October this year.
It may be mentioned here that Pakistan Telecommunication Authority’s (PTA) Device Identification Registration and Blocking System (DIRBS) will become operational from December 1, 2018.
After December 1, 2018 all such mobile devices that have a non-standard International Mobile Equipment Identity (IMEI) will be blocked by the PTA.
Government has announced to block all new mobile phones – brought into the country through illegal means – by year end as the federal cabinet set the deadline of December 31, 2018 for blocking all such phones.
“The cabinet decided to impose a ban on new mobile phones to be smuggled into the country after December 31, 2018,” Information Minister Fawad Chaudhry had said in a press conference.
Vide S.R.O 1456(1)/2018, the Federal Board of Revenue (FBR) has directed that for the adjudication of cases falling under Notification No. S.R.0.1455(I)2018, the Additional Collector of Customs, Model Customs Collectorates is empowered to exercise the powers of the Collector of Customs while the Deputy Collector and Assistant Collector of Customs, Model Customs Collectorates is empowered to exercise the powers of the Additional Collector of Customs.
Approximately, it has been estimated that imports of illegal phones in the market cause roughly $1.5 billion in revenue losses to the government exchequer annually.
Local mobile markets particularly in Saddar area Karachi are flooded with smuggled goods worth hundreds of millions. Customs authorities have time and again attempted to raid these mobile markets, but there has not been any major crack-down as the market associations and trade bodies resort to violence and protests causing law & order situation.
An official said Pakistan is the biggest market of made in China mobile phones, and Qmobile, the most sold mobile phone in Pakistan, was the most smuggled phone as well. Customs authorities detected and seized mammoth quantity of smuggled Qmobile phones lately and several cases were registered against M/s Digicom.
Other than that large quantity of assorted brand mobile phones including Iphone, Samsung, Huawei etc. are smuggled into the country through various channels particularly by air passengers coming from Dubai mostly.