A few days ago, the federal government of Pakistan presented Budget 2021-2022 in the National Assembly. One thing was quite clear that the government was intending to please the general public by offering a number of human development projects. Prime Minister Imran Khan had said “everyone would be happy” with the budget. However, this can be regarded as a populist statement as many people show resentment over the increase of some import taxes.
Mobile Phones To Get a Price Hike Due to Increased Import tax in the New Budget
The government has increased regulatory duties on the import of certain food and non-food items. The government has increased import duties on mobile phones by up to 240% which is a staggering number. Ultimately, it will lead to an increase in the prices of mobile phones which is not good in this era of technology. The main motive behind increasing the import tax is the collection of Rs 27 billion as additional revenue for the next fiscal year.
Another reason that is quoted for the increased import duty on mobile phones is that the regulatory duty on import of Mobile Phones will encourage import substitution and causes the local industry to come into the mainstream.
On the other side, the federal excise duty on telecom will be reduced by 1pc from 17pc applicable previously. In addition to that, withholding tax on telecom services will also be reduced to 3pc.