Govt Likely to Impose New Tax on Mobile Phones in Coming Budget

The Pakistan Mobile Phone Manufacturers Association (PMPMA) called on the Federal Board of Revenue (FBR) to honor the commitments made by the government to investors and refrain from increasing the tariff structures for mobile phones. Sources told ProPakistani that the federal government is considering imposing an 18 percent sales tax on mobile phone assembling units in the next budget. In a recent meeting with the FBR, the PMPMA delegation expressed concerns that increasing tariffs would not only disrupt the localization schedule but also negatively impact the export targets for mobile phones from Pakistan. The delegation highlighted that implementing an 18 percent sales tax on all mobile phones assembled in the country would deal a serious blow to the industry. Under the Mobile Device Manufacturing Policy 2020, phone sets priced up to $350 are exempt from the 18 percent sales tax, while sets above this price range are subject to the full sales tax. The Association noted that the majority of local companies assemble phone sets within this price range, which accounts for around 55 percent of smartphones used in the country.