Barkat Market in New Garden Town is one of south-central Lahore's busiest commercial hubs, and mobile phone and accessory shops are a big part of it. Phones are high-value, fast-moving goods with taxes collected at import and registration rules enforced through PTA — so the compliance picture for a phone retailer is more involved than for most shops.
How phones are taxed before they reach the shop
New phones entering Pakistan bear duties and taxes at import, and must be PTA-approved (registered) to work on local networks. Officially imported phones are registered by the importer. Phones brought in by individuals must be registered by paying the applicable charges. A retailer buying from authorised distributors receives phones on which these taxes have been paid.
What the retailer files
| Item | Treatment |
|---|---|
| Sales of new phones | Business income; sales tax as applicable |
| Accessories (covers, chargers, earphones) | Business income; standard goods |
| Repair services | Service income; PRA position to check |
| Used / refurbished phone trading | Trading income |
| Easy-load and mobile balance commission | Commission income |
Buying from authorised distributors
Authorised distributors issue invoices with IMEIs listed. These invoices prove the phones were bought legitimately and are your cost of goods. Buying non-PTA phones and selling them as registered is illegal; handling unregistered stock creates both regulatory and tax risk.
Used-phone trading
Many shops buy used phones from customers and resell them. For each phone, note the IMEI, the seller's CNIC, the price paid and the sale price. This protects you if a phone turns out to be stolen and gives you a clean trading record.
Sales tax position
Phones have specific sales tax treatment at import and in some cases at retail. Larger phone retailers and chains in air-conditioned plazas may fall under tier-1 retailer requirements, including POS integration. Small shops in open markets may not. We check where your shop falls.
Phone retailers hold high-value stock in small spaces. Count it properly at 30 June and record it at cost — a shop with a few hundred phones in stock has a lot of money tied up that must appear in the books.
Easy-load and franchise commissions
Telecom franchise and easy-load commissions are income, and telecoms often withhold tax on them. Collect their certificates.
Card machines and wallet payments
Phone buyers increasingly pay by card, bank transfer or mobile wallet, especially for expensive handsets. These receipts are reported through banks and wallet providers, so they're visible to FBR in full. Keep your cash and digital sales in proportion in your records: a shop showing large digital receipts but tiny overall sales doesn't reconcile. A daily summary — cash, card, transfer — closes the gap.
Instalment sales
Some shops sell phones on instalments to known customers. The phone is sold when handed over; amounts still owed to you at 30 June are receivables. Record each instalment customer separately, with CNIC and schedule.
Barkat Market — questions we get asked
File without taking a day off
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