LAHORE: Reducing customs duty on smartphones in the next fiscal year 2017-18 is an incentive of the incumbent government to promote the usage of the smartphone which would ensure a new era of evolution in the country.
Talking to media persons a spokesman of Pakistan Telecommunication Authority (PTA) said that the step has been taken to increase the uptake of smartphones in the country. He said with the inclusion of 3G and 4G technology in Pakistan, this sector has seen a surprising boom.
Owing to boom in the smartphones market and to attract foreign brands, the government has reduced withholding tax on mobile phones from 14 percent. Moreover, customs duty on smartphone sets will be cut to Rs 650 per set. The government has reduced taxes on certain kind of smart phones, the budget document has claimed.
According to details, one category – for which import duty was Rs. 1,000 – has been reduced to Rs. 650.It must be mentioned that there were three categories of handsets as feature phone – import duty: Rs. 300, low end smartphone – import duty: Rs. 650 (previously it was Rs. 1,000) and high end smartphone -import duty: Rs. 1,500.
With this tax reduction mid-range and low-end phones will see a price reduction, as most of the smartphone companies in Pakistan adjust their prices according to taxes and import duties.
