Govt hugely raises mobile phone taxes in Pakistan

Remember when we were all ecstatic about the abolishment of additional mobile phone taxes in the Budget 2019-20, it is time to be done with that short-lived happiness as our beloved phones are going to become pricier in Pakistan.

The federal government has revised the flat tax rates for six different slabs in budget 2019-20 as per the device’s import value and everyone who dreams of buying a flagship smartphone need to brace themselves as the phone with more than $500 import value will have to pay “Rs. 36,900” more to the government.

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Here are the new fixed rates of mobile phone taxes alongside the old regulatory duty and you can see that all tax slabs have been hit by the government new taxation policy

Mobile Phone Prices New Regulatory Duty  Old Regulatory Duty
Less than $30 Rs. 250 Rs. 180
$30-$100 Rs. 3,600 Rs. 1,800
$100-$200 Rs. 5,400 Rs. 2,700
$200-$350 Rs. 7,200 Rs. 3,600
$350-$500 Rs. 20,700 Rs. 10,500
More than $500 Rs. 36,900 Rs. 18,500

 

Pakistan has seen 6.86% a decline in mobile phone imports in the first 10 months of the fiscal year 2019-20 and with the horrendous increase in taxes and the rising dollar rate, the demand will surely decrease which will be a  huge blow to the handset industry in the country.

Source: Dawn

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