A Guide to Calculating Mobile Tax in Pakistan 2024

In today’s digital Era , mobile phones have become a necessary part of our lives. They are not just communication tools but also serve as multipurpose devices for entertainment, productivity, and more. However, in Pakistan, as in many other countries, there are taxes and duties associated with mobile phones. here we discuss detailed how to calculate mobile tax in Pakistan.

how to calculate mobile tax in pakistan

Understanding how to calculate mobile tax in Pakistan is essential to ensure compliance with the law and avoid any surprises when it comes to your mobile phone prices in pakistan . In this article, we’ll break down the process of calculating mobile tax in Pakistan in a simple and understandable manner.

Calculating Mobile Tax

To calculate the total tax amount for your mobile phone purchase, you need to follow these steps:

1. Check Retail Price: 

Find out the retail price of the mobile phone you intend to purchase. This is the price listed by the manufacturer or the retailer before taxes and duties.

2. Calculate Sales Tax:

 Multiply the retail price by the applicable sales tax rate. For instance, if the sales tax rate is 17%, you would multiply the retail price by 0.17 (17 divided by 100). This will give you the sales tax amount.

3. Calculate Federal Excise Duty (FED): 

Find the applicable rate of FED for your mobile phone’s price range. The FED rate is not a fixed percentage but is typically in the range of 1% to 4%. Multiply the retail price by the FED rate (in decimal form) to calculate the FED amount.

4. Calculate Withholding Tax: 

Withholding tax is generally a fixed percentage of the total price of the mobile phone. The rate may vary, so check with your mobile operator to determine the exact percentage. Multiply the total price by the withholding tax rate (in decimal form) to calculate the withholding tax amount.

5. Add Up the Taxes: 

Sum up the sales tax, Federal Excise Duty, and withholding tax amounts to find the total tax you will need to pay when purchasing the mobile phone.

Example Calculation:

Let’s say you’re buying a mobile phone with a retail price of PKR 40,000, and the applicable tax rates are as follows:

– Sales Tax: 17%

– Federal Excise Duty (FED): 3%

– Withholding Tax: 10%

Sales Tax = 40,000 * 0.17 = PKR 6,800

FED = 40,000 * 0.03 = PKR 1,200

Withholding Tax = 40,000 * 0.10 = PKR 4,000

Total Tax = 6,800 + 1,200 + 4,000 = PKR 12,000


By following the steps outlined in this guide and staying informed about the current tax rates, you can budget effectively and ensure that you’re paying the correct amount of taxes and duties when acquiring your mobile device. Remember that tax rates and regulations may change, so it’s always a good idea to double-check with relevant authorities or your mobile operator for the most up-to-date information.

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