Pakistan Government Plans to Introduce New Mobile Phone Tax

May 25, 2024Zayn0

The Federal Board of Revenue (FBR) was urged by the Pakistan Mobile Phone Manufacturers Association (PMPMA) to uphold the promises given by the government to investors and desist from raising the mobile phone rate structures. Pro Pakistani was informed by sources that the federal government is thinking of including an 18% sales tax on mobile phone assembly units in the upcoming budget. Here are the details.

PMPMA Delegation Highlighted Issues

The PMPMA delegation highlighted worries in a recent meeting with the FBR that higher tariffs would significantly affect Pakistan’s export goals for mobile phones in addition to conflicting with the localization plan. The delegation stressed that imposing an 18% sales tax on all mobile phones manufactured in the country would have a negative impact on the business.

Impact on Local Manufacturers 

The delegation emphasized that the industry would suffer greatly if an 18% sales tax was imposed on all mobile phones made in the nation. Phone sets up to $350 are excluded from the 18% sales tax under the Mobile Device Manufacturing Policy 2020, whereas sets over this amount are subject to the full sales tax.

Conflicting with Government Promises 

The PMPMA delegation emphasized that the government’s pledges to invest in the mobile phone manufacturing industry would conflict with the proposed tax rise. They asked the FBR to honour these commitments and not raise taxes because doing so would jeopardize the government’s initiatives to support exports and domestic production.

Current Tax Structure 

The PMPMA issued a warning, stating that the local mobile phone manufacturers will be severely impacted by the proposed tax rise. According to the Association, most local businesses build phone sets in this price range, which makes up about 55% of all cell phones in use in the nation.

In Summary 

The local manufacturers in Pakistan are concerned about the proposed 18% sales tax on mobile phone assembly units. According to the PMPMA, the decision would have a negative effect on the industry, be at odds with the government’s localization agenda, and betray investor agreements. The outcome of this matter is probably going to have a big impact on Pakistan’s mobile phone manufacturing industry’s expansion and development.

 

Zayn

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