Government Imposes New Tax on Handsets

Government Imposes New Tax on Handsets

Government has nullified a little relief of taxes to customers through introducing new tax on handsets

The government has imposed Rs 250 tax on international mobile equipment identification (IMEI) activation. This is in addition to Rs 500 custom duty the government levied on the purchase of new mobile phones last year (2013).

As Government Imposes New Tax on Handsets. According to An industry official:
[pull_quote_center]If this collection was done from a retail channel, even then it would require a lot of process management, which is a direct cost to business. To manage this, a significant investment will be required to create and maintain a database that will result in higher capital and operational expenditures – a direct hit on industry’s margins.[/pull_quote_center]

Telenor Pakistan’s Chief Corporate Affairs and Security Officer Muhammad Aslam Hayat, said:
[pull_quote_center]The responsibility of sales tax collection on handsets should be with its sellers. Enforcement of this tax at the cellular mobile operator level would definitely result in negative growth of the telecommunications sector[/pull_quote_center]

Usually found behind the battery, IMEI is a unique number that identifies handsets. Mobile service providers have been asked to collect this tax when a user puts his SIM in his newly-bought mobile phone.