ECC to Approve Incentive Packages for Smartphone Manufactures

According to the sources that the Economic Coordination Committee might approve the incentive packages for smartphone manufactures that propose a 10% rebate on smartphones exports as well as the reduction in taxes on manufacturing and assembling.

The Ministry of Information Technology and Telecommunication had submitted a summary to the Cabinet’s Economic Coordination Committee (ECC) proposing the major incentives for smartphones manufacturing in Pakistan. Which is scheduled to meet today for approval.

ECC to Approve Incentive Packages for Smartphone Manufactures

 

After the implementation of the package, there is a chance that all those manufacturers, who are relocating their plants to other countries such as India and Bangladesh, will shift their plants to Pakistan. The Zero sales tax on smartphone manufacturing and 10% rebate on smartphone export will definitely encourage all the manufacturer to install the plants in Pakistan instead of choosing any other country.

The linkage between the local mobile manufacturing, economic growth and broadband penetration can not be ignored and encouraging this sector would contribute to the GDP, as well as the import bill would be reduced. Moreover, it will create new job opportunities and promote industrialization in the country.

The Package has been prepared in the consultation with the industry stakeholders, operators, handset assemblers, task force on IT, FBR, ministries of finance, Commerce and PTA.

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