The Government of Pakistan collected at least Rs92 billion from mobile phone users in advance tax in the fiscal year 2023-24, marking a 15% increase compared to the last year, according to the finance ministry.

The ministry said this in a report on advance tax paid by users over the last five years in the National Assembly on Monday.

In the previous fiscal year, Rs80 billion was collected while Rs61 billion was gathered in 2022, and Rs55 billion in 2021, and Rs50 billion in 2020.

The advance tax collected from mobile phone users “is adjustable, allowing consumers to claim refunds in their income tax returns.”

In the fiscal year 2024-25 budget, the government ended the ongoing regime of sales tax for mobile phones which utilised a slab-based structure depending on pricing and had nominal sales tax.

The government is charging a flat 18% ad valorem sales tax on all mobile phones up to the value of $500 for the three categories of imported completely built, imported semi-built and locally manufactured completely built.

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For cellphones costing above $500, the sales tax rate will be: 25% ad valorem for imported completely built and 18% for imported semi-built and locally manufactured completely built.

“Concessionary rates create distortions by only benefiting some specific items in the market while the standard rate ensures that everyone gets equal opportunity and market forces work effectively,” the finance minister said in his budget speech on June 12.