FBR to “provide relief to the common man” by slashing duties on mobile phones import

The same summary is also asking to eliminate regulatory duty on “worn clothing and other worn articles”

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The Federal Board of Revenue (FBR) proposes to slash regulatory duty (RD) on the import of mobile phones even up to 50% in some cases amid the outcry. The solution has been proposed to give relief to the common man and support the digitisation of the economy.

According to FBR, the move will not impact the collection of duties overall because it will also perpetually and significantly increase the import as well.

“This reduction in duty/tax is expected to increase import volume of mobiles in Pakistan,” the summary, thar has been signed by FBR Chairman Shabbar Zaidi, read.

It further added that it will “to some extent, neutralize the otherwise negative impact of this measure,” as a local media source reports. The duties and taxes on mobile phones were previously brought down in the last budget.

The sharp reduction in regulatory duty will most significantly impact mobile phones with a cost and freight value between $100 and $200. The existing RD on this is Rs. 2,430, which will be reduced to Rs. 1,200.

Detailed table showing new proposed duties on mobile phones:

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Local manufacturers concerned over the move:

While the proposal will positively impact a regular consumer, it is also posing a threat to the local smartphone manufacturers who are in initial phases of the establishment. Speaking to Dawn, one such businessman said it will kill the local makers.

“This will effectively kill smartphone local assembling feasibility”

Adviser to PM on Commerce Razak Dawood and Engineering Deve­lopment Board are in talks pf finalizing mobile phone manufacturing policy. As mobile phones assembly is being moved out of China, it is likely to create more opportunities for other countries to attract more investment in the said sector.

With that, the same summary is also asking to eliminate regulatory duty on “worn clothing and other worn articles”. The current RD is 10pc. The summary states that used clothing is a major relief for low-income bracket and hence the duty on it needs to be slashed as well.


Also see: FBR Plans To Collect 150 Billion From Cigarettes Industry

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