Local Mobile Makers Want Govt to Ban Import of Used Mobile Phones

Local mobile phone manufacturers have urged the government to ban the import of used mobile phones to support the local industry. The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), led by Chairman Abdul Rehman Aziz, and representatives of mobile phone manufacturers met with Federal Minister for Commerce Jam Kamal Khan to address various issues impacting local manufacturing of automobiles and mobile phones. Representatives of mobile manufacturers, led by Aamir Allawala, demanded a ban on the import of old mobile phones to support the local industry. They also requested a specific rate for the General Sales Tax (GST) instead of the current 18 percent GST based on value, which, according to them, could lead to misdeclaration of values at the import stage and adversely affect the local industry. PAAPAM Chairman called for the imposition of regulatory duty (RD) across the board on all old and used vehicles. He explained that 70 percent of used car imports, which are below 1,300cc, are exempt from the newly imposed RD in the Finance Bill 2024-25. In the budget for 2024-25, a 15 percent RD has been imposed on imported used cars exceeding 1,300cc at the request of local assemblers. However, this RD did not resolve their issue as small vehicles, which are imported in large numbers, are exempted. The minister assured that these concerns would be addressed in consultation with the Ministry of Industries & Production, the Ministry of Finance, and the Federal Board of Revenue (FBR). He pledged all possible support to encourage local manufacturing of auto parts and mobile phones and emphasized the importance of keeping export as their primary goal.