FBR to cut duty on imported phones by 50 percent
ISLAMABAD: The Federal Board of Revenue (FBR) has decided to slash regulatory duty on imported mobile phones by 50 percent.
The FBR has decided to take the decision in order to provide relief to the common man and ‘to support digitisation endeavours’.
The summary, which carried the signature of FBR Chairman Shabbar Zaidi, claimed that the reduction in tax/duty is expected to increase the import of mobile phones in Pakistan which would neutralise the negative impact of high duties on imported phones.
“This reduction in duty/tax is expected to increase import volume of mobiles in Pakistan.This may “to some extent, neutralise the otherwise negative impact of this measure,” reads the summary.
Prices of mobile handsets that have a cost and freight value of between $100 and $200 will see the sharpest reductions. The current RD rate on such handsets is Rs2,430 while the FBR has revised it to Rs1,200.
However, the move is expected to be bad news for the local businessmen who fear the reduction in import duty will impact smartphone local assembling feasibility.
According to Dawn News, a mobile phone manufacturing policy is being finalised by the Adviser to PM on Commerce Razak Dawood in collaboration with the Engineering Development Board.