Business
FBR Urged to Refrain from Increasing Mobile Phone Tariffs
The Pakistan Mobile Phone Manufacturers Association (PMPMA) has appealed to the Federal Board of Revenue (FBR) to uphold the government’s commitments to investors and avoid increasing tariffs structures for mobile phone.
The association expressed concerns over reports that the federal government is considering imposing an 18 percent sales tax on mobile phone assembling units in the next budget.
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In a meeting with the FBR, the PMPMA delegation emphasized that raising tariffs would disrupt the localization schedule and negatively impact export targets for mobile phones from Pakistan.
The delegation highlighted that an 18 percent sales tax on all mobile phones assembled in the country would severely impact the industry, particularly local companies that assemble phone sets priced up to $350, which account for around 55 percent of smartphones used in the country.
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 PMPMA urged the FBR to honor the commitments made to investors and refrain from increasing tariffs to ensure the growth and development of the mobile phone industry in Pakistan.
