After the regulatory duty imposed on imported mobile phones last year expired, certain mobile phone businesses announced price reductions for their devices, which may be excellent news for Pakistani mobile phone consumers. Some of the devices from Tecno and Infinix already have lower prices.
Four of Tecno’s models have seen price drops, including Canon 19 New by Rs. 13,000, Sparks 8C by Rs. 7,000, Pova New by Rs. 9,000, and Pope 5 Lite by Rs. 8,000. Additionally, Infinix has decreased the cost of the Note 12 and Hot 12 by an unspecified sum.
Numerous clients who can now afford to purchase their preferred mobile phones have applauded the price reduction. The local mobile manufacturing industry, however, is also concerned because it fears that the local manufacturing market would be negatively impacted by the tariff decrease on imported phones. Aamirullah Wala, vice president of the Pakistan Mobile Phone Manufacturers Association, thinks that the local manufacturing sector will be at risk because of the tax cut on imported phones.
According to Aamirullah Wala, the non-opening of LCs is the reason why Pakistan’s mobile phone manufacturing sector has been shut down for the past two months. In these conditions, 40,000 people’s jobs are in jeopardy. The local market is being impacted by the increased import of mobile phones due to the reduced regulatory tariff. Wala claims that the 20 percent levy that previously applied to imported phones has been reduced in half. This duty cut would help importers, but it will hurt local makers of mobile phones and the government. Less tax income than before will be given to the government.
Despite the fact that practically all major mobile phone manufacturers have facilities in Pakistan, the phones with the lower prices are imported rather than locally produced. The local market will suffer greatly if LCs are not opened for the import of mobile phone parts.
Senior vice president of the Electronic Dealers Association, Minhaj Gulfam, applauded the regulatory tariff reduction but acknowledged that local manufacturers are still having issues because they must import raw materials and continue to have issues with their LCs. He also thinks that other mobile phone manufacturers, like Samsung, will cut their prices in order to compete in the market.
The Federal Bureau of Revenue (FBR) has not yet released a new SRO covering the elimination of regulatory duties on imported mobile phones or the reinstatement of previous duties, nevertheless. While some businesses have lowered their pricing, it is uncertain whether this pattern will hold across the board. In any case, this price reduction is fantastic news for Pakistani mobile phone consumers.
