ISLAMABAD – Mobile phone handset prices are likely to increase again as thefederal government is reportedly considering to increase regulatory duty onimport of mobile phones.
Finance Minister Asad Umar has stated that the government is planning tointroduce necessary changes in the Finance Act 2018 to make it morerelevant to the current economic state of the country.
The previous government had imposed a levy of up to Rs 5000 on importingmobile phone handsets in the budget 2018-19 which came into effect fromJuly 1, 2018, through Finance Act 2018.
The objective behind the move was to curtail growing imports and generateadditional revenue. However, mobile phone import witnessed a phenomenalgrowth of 19.44 percent in the fiscal year 2017-18 – $847.654 millioncompared to $709.690 million during the same period of 2016-17.
According to the Finance Act 2018, smartphones of different categories arecharged under the following criteria:
– The levy is zero where the import value of handset (including duties and taxes) does not exceed Rs10, 000. – There is a levy of Rs 1000 per set where import value of handset (including duties and taxes) exceeds Rs10, 000 but does not exceed Rs 40, 000. – There is a levy of Rs 3000 where the import value of handset (including duties and taxes) exceeds Rs 40, 000 but does not exceed Rs 80, 000. – There is a levy of Rs 5000 where the import value of handset (including duties and taxes) exceeds Rs 80,000 per set.
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According to the Finance Act, a levy of Regulatory Duty (RD) @ Rs175/set oncompletely knocked down (CKD)/semi-knocked-down (SKD) kits of mobile phoneshad been imposed.
However, the PTI-led government is all set to introduce a new budget wheredifferent measures are under consideration to enhance revenue, exports andcurtail imports to reduce the trade deficit, ease pressure on the localcurrency and narrow budget deficit, by imposing a regulatory duty onnon-essential items.
Commerce Division has reportedly prepared a list of non-essential items andthe government is considering measures to rationalize non-essential importsto reduce the quantum of trade deficit. According to officials, thegovernment is likely to enhance regulatory duty on mobile imports.
