ISLAMABAD – Prices of mobile phones are likely to get slashed as a big cut in duty would significantly bring down the prices of gadgets.
The smartphone market saw a boom in the last few years however the devices have become increasingly expensive in recent times in the wake of the economic crisis. Restrictions on the Line of Credits of imports, and increasing demand make existing devices more expensive.
Amid the soaring prices, the country’s apex tax collection authority is considering options to slash the duty on mobile phones in the upcoming budget, in light of suggestions by Pakistan Mobile Phone Traders.
Earlier, the government jacked up the duty on small and big mobile phones by 100-150pc to garner additional funds but the move does not even cover 25 percent of the target.
Reports claimed that a 75 percent duty was imposed on cellular phones – which was quite high as compared to other neighboring countries and now many people are using these devices without paying duties.
Traders apprised FBR and the government that duty on mobile phones does not contribute to the national exchequer but affects people from all walks of life, especially students and professionals. Mobile traders also decried smuggling which started in the wake of heavy imposition of taxes.
