Government Expected to Impose New Tax on Mobile Phones in Upcoming Budget
The Pakistan Mobile Phone Manufacturers Association (PMPMA) has urged the Federal Board of Revenue (FBR) to honor the government’s commitments to investors and avoid increasing tariffs on mobile phones.
Sources indicate that the federal government is considering imposing an 18 percent sales tax on mobile phone assembly units in the upcoming budget.
During a recent meeting with the FBR, the PMPMA delegation expressed concerns that higher tariffs would disrupt the localization schedule and negatively impact Pakistan’s mobile phone export targets.
The delegation emphasized that an 18 percent sales tax on all mobile phones assembled in the country would severely impact the industry. Under the Mobile Device Manufacturing Policy 2020, phone sets priced up to $350 are exempt from this tax, while more expensive sets are subject to the full 18 percent sales tax.
The Association pointed out that most local companies assemble phone sets within this exempt price range, accounting for about 55 percent of the smartphones used in Pakistan. PSX Launches Text-to-Speech Feature on Website
