Keeping in view the current deterioration of Pakistani currency, authorities are taking aggressive measures to somehow contain the deterioration of Pakistani Rupee against the US Dollar and other currencies of course. Unfortunately, some of these adopted strategies are not going in favor of masses. One such policy is to impose so much import duties and taxes on non essential import items that affordability goes down and very less of these items get imported. In past along with other items, vehicles imports were decreased with this strategy, now the cell phones are new item on which significant taxes are imposed.
Federal board of Revenue have recently increased taxes once again on mobile phones and details of these taxes are as follows.
Price USD | Regulatory Duty | Sales Tax | Withholding Tax | Mobile Levy |
Up to $30 | Rs. 300 | Rs. 200 | Rs. 100 | Rs. 100 |
$30 to $100 | Rs. 3000 | Rs. 200 | Rs. 100 | Rs. 200 |
$100 to $200 | Rs. 7500 | Rs. 1680 | Rs. 930 | Rs. 600 |
$200 to $350 | Rs. 11000 | 17% | Rs. 970 | Rs. 1800 |
$350 to $500 | Rs. 15000 | 17% | Rs. 5000 | Rs. 4000 |
$500 to $700 | Rs. 22000 | 17% | Rs. 11500 | Rs. 8000 |
Above $700 | Rs. 22000 | 17% | Rs. 11500 | Rs. 16000 |
It is definitely evident from the tax details table above that huge taxes were imposed on cell phone imports. Specially, higher end model are made very expensive with huge taxes on top of price. Not one, not two, total four taxes including Regulatory Duty, Sales Tax, Withholding Tax and Mobile Levy have to be paid on top of cell phone price, which is insane. However, Withholding Tax is the one which the tax filers will be able to take back or adjust in their taxes on end of year. Though it is not very significant portion of all taxes imposed.
In my personal opinion, when whole world is adopting technology, adding huge taxes on cell phones will be counterproductive. Computers of all kind, Table and cell phones etc should be made tax free or at least add fewer taxes on them. So the software and app developers can easily get their hands on these devices and than use them for testing and developing softwares and apps via these devices. As, software and apps industry can bring in lots of revenue in the country, that too in much needed United States Dollars (USD).