The Pakistan Mobile Phone Manufacturers Association (PMPMA) has urged the Federal Board of Revenue (FBR) to uphold the government’s commitments to investors and avoid increasing tariff structures for mobile phones.
There are deliberations within the federal government regarding the imposition of an 18 percent sales tax on mobile phone assembly units in the forthcoming budget. During a recent meeting with the FBR, representatives from PMPMA expressed apprehensions, citing potential disruptions to localization schedules and adverse effects on Pakistan’s mobile phone export targets.
The delegation emphasized that imposing an 18 percent sales tax on all domestically assembled mobile phones could severely impact the industry. According to the Mobile Device Manufacturing Policy 2020, phones priced up to $350 are exempt from this tax, while those priced above this threshold are subject to the full tax.
PMPMA highlighted that a significant portion of local companies assemble phones within the tax-exempt price range, covering approximately 55 percent of smartphones used in the country.
