The government has announced the budget 2018-19 today. Newly inducted Finance Minister of Pakistan, Miftah Ismail presented the much-awaited federal budget in front of National Assembly. In Budget 2018-19: Taxes on Smartphones Increased. This is not a very good news for Telecom companies and mobile phone sellers.
Mobile phone imports in Budget 2018-19 divided into 4 categories
The government has introduced an additional tax on the import of smartphones according to Excise Act 2005. However, there is no additional import duty on smartphones below Rs 10,000. Import levy of Rs 1000 is imposed on the smartphones ranging between Rs10,000 to Rs40,000.
Heavy amount of Rs 3,000 will be levied on the imported smartphones between the price range of Rs 40,000 and Rs 80,000, whereas Rs 5,000 additional tax will be charged on the mobile phones priced over Rs 80,000.
Last year there were three categories instead of four which was as follows:
- Feature phone – Import Duty: Rs. 300
- Low-end smartphone – Import Duty: Rs. 650 (Previously it was Rs. 1,000)
- High-end smartphone – Import Duty: Rs. 1,500
Last year, the federal government had reduced taxes on certain kind of smartphones which was a relief to ICT sector. Let’s see how Pakistan’s ICT industry will respond to the increase in taxes.