Mobile Phone Taxes Industry and Users' Worries

Pakistan's 18% tax proposal on mobile phone parts raises concerns, risking to hinder industry growth despite local solid assembly

03:19 PM | 24 May, 2024
Mobile Phone Taxes Industry and Users' Worries

The Pakistan Mobile Phone Manufacturing Association (PMPMA) strongly opposes the proposed tax hike, contending that it would escalate mobile phone prices, particularly impacting individuals with lower incomes. 

For instance, smartphone usage among Bykea riders, who rely on these devices for their livelihoods, could become financially burdensome with increased prices.

Moreover, the tax may impede the country's transition to advanced technologies such as 3G and 4G. Presently, around 40% of mobile users in Pakistan still utilize 2G phones, lagging behind the usage trends in developed nations. Thus, Pakistan's technological advancement could suffer if affordability barriers to newer phone models arise from higher taxes.

Despite the revenue intentions behind the proposed tax, alternative sources such as taxes on SIM cards already contribute substantially to government income. This suggests that imposing additional taxes on mobile phones may not be the most prudent approach.

In a meeting with the Federal Board of Revenue (FBR), the PMPMA stressed the importance of honouring government commitments to investors and avoiding tariff increases on mobile phones. They cautioned that heightened tariffs could disrupt localization efforts and jeopardize Pakistan's mobile phone export objectives.

In conclusion, while the government seeks to boost revenue, it must consider the broader repercussions of its tax proposal. The PMPMA urges the government to reassess its plan and explore strategies to bolster local manufacturing without excessively burdening the public with smartphone costs.

Daily Pakistan Global Web Desk


Pakistani Rupee exchange rate to US Dollar, Euro, Pound, Dirham, and Riyal - 19 June 2024

Pakistani rupee rates against US Dollar and other currencies on June 19, 2024 (Wednesday) in open market.

USD to PKR Rate Today

US dollar was being quoted at 277.50 for buying and 280.65 for selling.

Euro's buying rate stands at 296 and selling rate is 299 while British Pound rate is 349.7 for buying, and 353.25 for selling.

UAE Dirham AED was at 74.80 and Saudi Riyal at 72.80.

Forex Rates 

Currency Symbol Buying Selling
US Dollar USD 277.50 280.65
Euro EUR 296.00 299.00
UK Pound Sterling GBP 349.70 353.25
U.A.E Dirham AED 74.80 75.60
Saudi Riyal SAR 72.80 73.55
Australian Dollar AUD 182.00 184.00
Bahrain Dinar BHD 741.18 749.18
Canadian Dollar CAD 204.00 206.00
China Yuan CNY 38.43 38.83
Danish Krone DKK 40.18 40.58
Hong Kong Dollar HKD 35.66 36.01
Indian Rupee INR 3.33 3.44
Japanese Yen JPY 1.90 1.98
Kuwaiti Dinar KWD 909.34 909.34
Malaysian Ringgit MYR 59.30 59.90
New Zealand Dollar NZD 170.79 172.79
Norwegians Krone NOK 25.97 26.27
Omani Riyal OMR 723.88 731.88
Qatari Riyal QAR 76.42 77.12
Singapore Dollar SGD 203.65 205.65
Swedish Korona SEK 26.40 26.70
Swiss Franc CHF 311.90 314.40
Thai Bhat THB 7.58 7.73


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