Dip in Dollar Value! How it Will Affect Mobile Phone Taxes in Pakistan?

For the past month or so, we have been witnessing a continuous decline in the value of USD against PKR. It can be attributed to the recent action taken by the authorities in Pakistan to curb dollar hoarding and smuggling. However, now the question arises whether there will be a decrease in PTA taxes on smartphones. Well, as per our research, it is possible that the taxes on mobile phones will also decrease with the declining value of USD.

 

The aforementioned image encompasses the duty calculator that is available on the official website of the Federal Board of Revenue (FBR). As we have highlighted, the exchange rate also gets updated automatically as the USD value fluctuates. It implies that taxes on smartphones should also come down with the declining value of the dollar.

Does the reduction in smartphone prices indicate a reduction in taxes?

In the past 3 weeks, we have witnessed a reduction in prices on several smartphones. We aren’t sure that the price reduction is because of the decrease in dollar value, but certainly, it can be one of the reasons. Let’s look at the latest price reduction on several smartphones to give you a more clear picture.

Smartphone Models	New Price (PKR)	Old Price (PKR)
Samsung Galaxy A14 4GB/128GB	56,999/-.	62,999/-.
Samsung Galaxy A14 6GB/128GB	59,999/-.	64,999/-.
Samsung Galaxy A04 3/32GB	31,500/-.	37,500/-.
Samsung Galaxy A04 4/64GB	35,500/-.	42,999/-.
Samsung Galaxy A04s 4/64GB	39,999/-.	44,999/-.
Samsung Galaxy A04s 4/128GB	43,999/-.	48,999/-.
Xiaomi Redmi 10 A (4GB+128GB)	32,999/-.	42,999/-.
Xiaomi Redmi 10 A (3GB+64GB).	28,999/-.	38,999/-.
Xiaomi Redmi A1+(3GB+32GB)	21,999/-.	26,999/-.
Xiaomi Redmi A1+ (2GB+32GB)	19,999/-.	23,999/-.
Xiaomi Redmi 12C (4 GB+64 GB)	27,999/-.	30,999/-.
Redmi 12C (4GB+128GB)	30,999/-.	33,999/-.
vivo Y02s (3GB+32GB)	31,999/-.	35,999/-.
vivo Y02t (4GB+64GB)	35,999/-.	39,999/-.
ITel S23	30,999/-.	35,999/-.

There has been a considerable decrease in the prices of several smartphones. We hope that if the USD continues a downward trend, then there should be a further decrease in the prices of smartphones.

Impact on Consumer Behavior:

The steady decline in the value of USD against PKR and the potential decrease in smartphone prices can have the following impacts on consumer behavior:

• Increased Purchases:

As mobile phone prices go down, consumers may become more inclined to buy new mobile phones or upgrade their existing ones. The reduction in prices makes it feasible for consumers to purchase newer models or features.

• Consumer Confidence:

The reduced smartphone prices may also boost consumer confidence in the market. Consumers are more likely to buy more smartphones when they perceive prices as reasonable.

• Market Competition:

The reduction in prices can also intensify competition among smartphone manufacturers and retailers. The mobile phone companies may strive to provide better deals and promotions to attract more customers.

Also read:

Pakistan Imports Mobile Phones Worth $180 Million Amid Economic Challenges