IT Minister Sheds light on Incentives for Local Mobile Industry

On Monday, the Pakistan Mobile Summit took place in Islamabad, where multiple mobile industry stakeholders participated. The Federal Minister for IT and Telecom, Dr. Umar Saif, was invited as the event’s chief guest. Speaking on the occasion, Dr. Umar appreciated the efforts made by the local mobile phone industry with respect to local manufacturing. He highlighted a range of measures that the government is taking to boost the local mobile industry and harness its true potential.

Zero Income Tax on CKD/SKD Units:

Dr. Umar stressed the tax relaxation the government is providing to local mobile manufacturing companies. He said that local manufacturers are exempt from the income tax on the import of completely knocked down (CKD) and semi-knocked down (SKD) phones worth up to $350.

R&D allowance for mobile manufacturing companies:

The minister also mentioned the 3% allowance being provided to mobile manufacturing companies for research and development (R&D). He further said that the government is planning to increase this allowance to 8% in the next fiscal year.

A new local mobile manufacturing policy:

Minister Umar also talked about a new policy for local mobile manufacturing, which is currently under scrutiny. As per the policy, local mobile manufacturers will be bound to make at least one component of the mobile phone in Pakistan besides the import of CKD/SKD units. The minister claimed that the policy could lead to the manufacturing of high-end mobile phones in the country.

In the end, Dr. Umar Saif expressed optimism regarding the future of the local mobile industry and urged stakeholders to cooperate towards building a vibrant ecosystem that not only increases manufacturing but also positions Pakistan as a hub for technological innovation in the global market.

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