In a significant shift affecting Pakistan’s digital landscape, the newly introduced budget has imposed substantial taxes on mobile phones, potentially hindering accessibility and growth in the sector. The government has enforced a sales tax ranging from 18% to 25% on mobile phones, which has sparked concerns among consumers and industry stakeholders.
Mobile phones, previously regarded as essential tools for digital advancement, are now set to become more expensive. Critics argue that this decision was made without adequate consultation, potentially jeopardizing digital inclusion and economic growth. The local manufacturing sector, which has been producing global mobile phone brands to foster competition and boost employment, faces immediate challenges in absorbing the increased costs. Experts predict that these taxes could lead to price hikes, thereby deterring consumer demand.
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Additionally, the new budget introduces a 75% advance tax on mobile balance loading and increases the General Sales Tax (GST) from 15% to 19%. Consequently, for every Rs100 loaded onto a mobile balance, users will only receive Rs5.50, placing an additional financial burden on consumers.
As stakeholders evaluate the impact of these changes, concerns are mounting over the potential negative effects on local production and consumer affordability. The future of Pakistan’s mobile industry remains uncertain amidst these regulatory adjustments, with industry leaders and consumers alike voicing apprehensions over the long-term implications for the sector.
