Starting July 25, 2024, Pakistan’s mobile phone market will see a significant price hike due to new tax regulations introduced by the Federal Board of Revenue (FBR). Here’s a breakdown of what you need to know:
Key Changes:
- 25% Sales Tax on High-End Phones:
- Mobile phones that are completely built-up (CBU) and valued over $500 will be hit with a 25% sales tax.
- Phones priced under $500 will see an 18% sales tax.
- Tax on Locally Assembled and Imported Phones:
- Locally assembled CBU phones, along with imports in completely knocked down (CKD) or semi-knocked down (SKD) forms, will be taxed at 18%.
- Additional Taxes and Duties:
- The new budget also proposes a federal excise duty (FED) on imported phones.
- The Pakistan Telecommunication Authority (PTA) tax is expected to increase.
- General Sales Tax (GST) on mobile phone imports will also be raised.
Impact on Consumers:
- Price Increase: The combination of higher sales tax and additional duties will likely result in increased prices for mobile phones in Pakistan. Consumers should expect to pay more for both high-end and budget phones.
- Market Adjustments: Retailers and importers may adjust their prices to accommodate the new tax structure, leading to potential changes in the market.
What to Expect:
- Higher Costs: With the new taxes, consumers might see a notable rise in mobile phone prices across various brands and models.
- Budget Phones: While budget-friendly phones under $500 will have a lower tax rate, the overall price of these devices might still be affected by other tax increases.
These changes are part of the broader fiscal adjustments for the new financial year and aim to boost government revenue while impacting the cost of mobile technology for Pakistani consumers.
