Increase in Taxation Results in Mobile Phones Imports Decline

Recently Prices of mobile phones have shoot-up because the government has increased duty on handsets in order to curtail the smuggling. An another major reason of increase in mobile phone’s price is depreciation of rupee which has caused a decline in imports. In November the prices of feature phones has increased up to 70%. Increase in Taxation Results in Mobile Phones Imports Decline.

According to the Pakistan Bureau of Statistics (PBS), that in November 2017 the imports of cellphones has declined to $58 million from $65 million in the same period of last year. The government has taken strict measures in order to prevent smuggling of mobile phones.

Increase in Taxation Results in Mobile Phones Imports Decline

Federal Board of Revenue (FBR) imposed a duty of Rs250 on mobile phones of Rs15,000 or more while Rs300 was levied on cheaper handsets worth Rs6,000 or around Rs6,000 in October-2017. This could be also one of the major reasons in decline in imports of Mobile phones, because the high taxes have discouraged the importers too.

No doubt, it is such a great step taken by Government to control smuggling but the consumer will suffer from this decision too, because in future they will buy mobile phones with high cost.

In the first five months of this year the imports of cellphones were 14% higher than the same period of last year. But the depreciation of rupee has also adverse effects on the overall decline in imports.

Read Next: Telecom Imports Increases to $333.01 mn in Q1 FY 2017-18

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