Simultaneously, the new budget imposes many new levies and taxes on the telecom sector and mobile phone industry, which are anticipated to stifle several development initiatives related to telephony, internet services, and mobile phone manufacturing. Some of the new taxes imposed on the telecom sector in the new budget are mentioned below: Increase in Regulatory Duty on optical fiber import: The regulatory duty (RD) on optical fiber cable imports was hiked from 10% to 20% in the recently announced federal budget, with the main aim of promoting local manufacturing of the high-tech cables. Increase in Taxes on CKD, SKD, and CBU Devices: The government also imposed stringent levies on completely knocked down (CKD) devices, Semi Knocked Down (SKD) devices, and Completely Built Units (CBU). The sales tax on the import of completely knocked down (CKD) devices worth more than $100 has been ramped from Rs 10 per set to 10pc of their value. Simultaneously, the sales tax on completely and semi-knocked-down (SKD) devices will be around PKR 4,000 at the rate of 10% for phones worth $200 or more. Increase in Taxes on Import of Mobile Phones: The new budget has set a new sales tax of up to PKE 16,000 on the import of mobile devices. Now, we would break down the taxes for each price segment. Mobile Devices worth $30: For the mobile phone with a cost and freight (C&F) value of up to $30, there will be a levy of PKR 100 per set. Mobile Devices worth $30 – $100: For the mobile phones with a C&F value of $30 to $100, the levy rate per set will be PKR 200. Mobile Devices worth $101 – $200: For mobile phones with a C&F value between $101 and $200, the levy rate per set will be PKR 600. Mobile Devices worth $201 – $350: The sales tax per device for mobile phones with a C&F value of $201 to $350 will be PKR 1800. Mobile Devices worth $351 – $500: The sales tax on mobile phones having a C&F value between $351 and $500 will be PKR 4000. Mobile Devices worth $501 – $700: On mobile phones with a C&F value between $501 and $700, the sales tax per device will be PKR 8000. Mobile Devices worth $701 or more: The sales tax on mobile phones having a C&F value of above $701 will be PKR 16000. If you want to import any new device, then you can find the exact tax from the link below: Mobile Phones Taxes in Pakistan Calculator: PTA Mobile Taxes (2022)
Tech Experts & Industry Players Showing Concerns over the new taxes:
The tech experts and industry players from around the country have voiced concerns that the new tax measures would affect the development plans of the private sector as well as the government-led Universal Support Fund (USF) programs. In this regard, a senior official from Jazz Pakistan said, The vice president of the All Pakistan Mobile Phones Association also expressed concerns over the new taxes imposed on mobile devices. He remarked, Final Words: The government of Pakistan must review these new taxes imposed on the telecom sector as they will have a debilitating effect and can slow the growth of the IT industry. In this rapidly transforming technology world, such measures aren’t healthy and would slow Pakistan’s overall progress. Check out? Earning Via Social Media to have Increase Taxes
