Federal Minister for Industry Hamad Azhar, in his budget speech, said that permission had been given to make mobile phones in Pakistan. In the budget of the next financial year, sales tax is being reduced for making mobile phones in Pakistan.
The government has reduced the sales tax on mobile phones made in Pakistan, which will make them available at lower prices than imported phones.
It may be recalled that mobile phone production and assembly in Pakistan has increased by 126%. In 2019, 11.7 million mobile phones were manufactured in Pakistan, out of which 70 thousand 4G mobiles were manufactured. The industry employed 3,200 people last year, while commercial imports of mobile phones grew 26 percent year-on-year, and revenue grew 127 percent due to the mobile registration system. According to the report, mobile registration revenue is expected to reach Rs 22 billion to Rs 50 billion annually.
Keep in mind the government also increases the tax on imported cigarettes, cigars, soft drinks, and other tobacco products was being increased from 65% to 100%.