ISLAMABAD: The Federal Board of Revenue (FBR) is mulling options to reduce duty on mobile phones in the federal budget for fiscal year 2023-24, which is expected to be unveiled on June 9 — keeping in view the suggestions of Pakistan Mobile Phone Traders, JEE News reported on Monday.
Earlier, the government was obliged to increase the duty on mobile phones from 100% to 150%, as a result of which, instead of 85 billion rupees, only 5 to 10 billion rupees were collected in the national exchequer.
The number of mobile phone users in Pakistan has crossed 186.9 million.
To deal with the financial crisis of the current fiscal year, the new budget proposes a drastic reduction in duty rates on mobile phones, which currently range from 100 to 150 percent on smaller and smaller mobile phones. Large mobile phones.
The mobile industry is on the brink of collapse due to increased taxes. This not only affected the traders but also made it difficult for millions of people to earn their livelihood.
It is learned that the delegation of Mobile Phone Traders Association has given recommendations to Finance Minister Ishaq Dar and other senior officials.
The delegation assured that efforts would be made to incorporate the recommendations in the budget. These suggestions and recommendations are being reviewed to form part of the new budget.
It is learned that Pakistan has 75% duty on cellular phones compared to other countries in the region like Singapore, Bangladesh and Turkey where it is not at that level. This is the reason why people are using smart phones without paying duty along with FBR.
The 100% to 150% additional duty on mobile phones has put it beyond the reach of the poor, labourers, daily wage earners, students, professionals, lawyers and civil society.
Munir Baig Mirza, General Secretary of All Pakistan Mobile Phones Traders Association, said that due to the ban on the import of used mobile phones, smuggling has increased to favor a few companies.
In addition, people are illegally using smartphones without paying heavy taxes to enjoy all the functions of smartphones, causing loss to the national exchequer.
He said that if proper duty is imposed in the new financial year, not only every consumer will pay tax, but the government will get 100 billion rupees instead of 5 billion rupees on the phone.
