ISLAMABAD: To remove the classification dichotomy on set top boxes for gaining access to internet (PCT Code 8517.6950), the Federal Board of Revenue (FBR) has proposed increase in duty from 10 to 20 percent through tariff in budget 2016-17.
The FBR said that HS Code 8517.6950 covers set top boxes for internet, while HS Code 8528.7290 also covers set top boxes for TV transmission. However, Note D (1) to Chapter 8528 of the explanatory notes provide that this group includes the apparatus whether or not designed to incorporate a video display or screen such as receiver of television broadcast (terrestrial cable or satellite, which do not includes a display device CRT, LCD etc).
These apparatus receive signal and convert them into a signal suitable for display. A modem can be incorporated for connection into the internet. Since, the set top boxes whether for TV signal or for internet covered under HS Code 8528. Therefore the classification of set top boxes under HS Codes 8517.6950 may be deleted.
