The recent budget in Pakistan has introduced substantial taxes on mobile phones, marking a significant development in the country’s digital landscape. Sales taxes ranging from 18% to 25% have been imposed on mobile phones, sparking concerns among consumers and industry stakeholders alike.
Mobile phones, once seen as crucial for digital progress, are now set to become more expensive due to these taxes. Critics argue that this decision was made without adequate consultation, potentially risking negative impacts on digital inclusion and economic growth.
The local manufacturing of global mobile phone brands in Pakistan, intended to stimulate competition and employment, faces immediate challenges. Experts foresee difficulties in absorbing higher costs and warn of possible price increases that could dampen consumer demand.
Additionally, the new budget introduces a 75% advance tax on mobile balance loading and raises the General Sales Tax (GST) from 15% to 19%. This translates to users receiving only Rs5.50 for every Rs100 loaded onto their mobile balances, further burdening consumers financially.
As stakeholders evaluate the implications and express concerns regarding both local production viability and consumer affordability, the future of Pakistan’s mobile industry appears uncertain amidst these regulatory changes.
