Mobile phone import climbs up by 79.46% in seven months

Mobile phone import climbs up by 79.46% in seven months

KARACHI: The import of mobile phones has surged by 79.46 percent during first seven months (July – January) of current fiscal year owing to reduction in tax rate by the government to promote digital economy.

The import of mobile phones increased to $760.58 million during first seven months of current fiscal year as compared with $423.82 million in the corresponding months of the last fiscal year, according to import data released by Pakistan Bureau of Statistics (PBS).

The government announced Tax Laws (Second Amendment) Ordinance, 2019 on December 28, 2019 through presidential order.

Prior to the promulgation of the Tax Laws (Second Amendment) Ordinance,2019 the rate of withholding income tax on the import of mobile phones was Rs.730 in case of a mobile phones having value exceeding 30 UD dollars and up to 100 US Dollars.

In order to complement the efforts of the government towards promotion of financial inclusion, e-commerce etc, income tax at the import stage in respect of mobile phones having value exceeding 30US dollars and up to 100US dollars has been reduced from Rs.730 to Rs.100 per mobile phone.