In a recent meeting, Pakistan Mobile Phone Manufacturers Association (PMPMA) urged the Federal Board of Revenue (FBR) to uphold the promises made by the government to investors.
It also urged the federal tax authority to avoid raising tariff structures for mobile phones. According to a local digital media outlet, ProPakistani, the federal government is considering imposing an 18 percent sales tax on mobile phone assembling units in the next budget.
During the meeting, the PMPMA delegation voiced their concerns regarding the potential impact of increasing tariffs. It said that such a decision will disrupt the localization schedule as well as negatively impacting the export targets for mobile phones from Pakistan.
According to PMPMA, imposing an 18 percent sales tax on all domestically assembled mobile phones would severely impact the industry.
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It is pertinent to mention that under the Mobile Device Manufacturing Policy 2020, phones priced up to $350 are exempt from the 18 percent sales tax, while those above this price range are subject to the full sales tax.
The association further highlighted that the majority of local companies assemble phone sets within this price range, which constitutes around 55 percent of smartphones used in the country.
