Cellphones import: four taxes merged to facilitate tax payment

The federal government has merged four taxes - sales tax, customs duty, regulatory duty and withholding tax - charged at the import stage into a single tax to facilitate payment of duties and taxes on the import of mobile phones.
According to the Finance Supplementary (Second Amendment) Bill, 2019, the government has rationalised the collection of duty and taxes on mobile phones through collection of all duties/taxes on uniform slabs based on C&F values at the fixed rates, where the prices of expensive mobile phones would further increase.
According to the Finance Supplementary (Second Amendment) Bill, 2019 the existing feature-based sales tax slabs on mobile phones in the Ninth Schedule to the Sales Tax Act, 1990, are complicated and also do not differentiate between inexpensive and expensive mobile phone sets. The current slabs are being replaced with import value based slabs.
Cellular mobile phones or satellite phones to be charged on the basis of import value per set, or equivalent value in rupees in case of supply by the manufacturer, at the rate as indicated against each category.
According to the Finance Supplementary (Second Amendment) Bill, 2019 no levy is imposed on imported phones valued under $100; Rs 500 levy has been imposed on imported mobile phones worth $100 to $200, Rs 1,500 levy has been imposed on imported mobile phones worth $200 to $350, Rs 3,500 levy has been imposed on imported mobile phones worth $350 to $500 and Rs 7,000 levy has been imposed on imported mobile phones worth above $500.
According to another slab, tax Rs 70 would be levied on imported phones valued under $30, Rs 730 on imported mobile phones worth $30 to $100, Rs 930 on imported mobile phones worth $100 to $200, Rs 970 on imported mobile phones worth $200 to $350, Rs 3,000 on imported mobile phones worth $350 to $500 and Rs 5,200 on imported mobile phones valuing exceeding $500.
In the Ninth Schedule, in the Table in column (1), for serial number 2 and entries relating thereto in columns (2), (3), (4) and (5), the following shall be substituted, namely cellular mobile phones or satellite phones to be charged on the basis of import value per set, or equivalent value in rupees in case of supply by the manufacturer, at the rate as indicated against each category:- Rs 150 on mobile handsets not exceeding price of $30, Rs 1,470 on imported mobile phones worth $30 to $100, Rs 1,870 on imported mobile phones worth $100 to $200, Rs 1,930 on imported mobile phones worth $200 to $350, Rs 6,000 on imported mobile phones worth $350 to $500 and Rs 10,300 on imported mobile phones worth more than $500.