The federal cabinet approved the country’s first mobile phone device manufacturing policy. Up to $350 fixed income tax on mobile device manufacturing and assembly will be eliminated. Fixed income tax on mobile devices worth $351 to $500 will increase by Rs 2,000.
According to sources, the fixed income tax on phones worth $500 will be increased to Rs 6,300. Under the manufacturing policy, steps will be taken to eliminate non-declaration of imported mobiles, local manufacturers will be given a 3% R&D allowance for mobile exports.
There will be a 4% holding tax exemption on domestic sales of mobile phones manufactured in the country. According to the manufacturing policy, the government will differentiate between the complete manufacture and assembly of mobile phones.
According to a statement issued by the Ministry of Industry, EDB will act as the secretariat for the mobile phone manufacturing policy. The mobile device manufacturing policy has been approved.
The Ministry of Industry says that the local manufacture of mobile phones will boost the industry. The policy was formulated by the Engineering Development Board after consultation with the concerned partners. The Ministry of Industry further said that the annual consumption of mobile phones in Pakistan is over 40 million.
Manufacturer approved by Pakistan Telecommunication Authority (PTA) will be exempted from regulatory duty on import of SKD and CKD, up to $350 will be exempted from fixed income tax on SKD and CKD manufacturing, Ministry said. The local manufacture of mobile phones will boost the industry, Sanat said.
The Ministry of Industry said that the policy was formulated by the Engineering Development Board after consultation with the concerned partners. Fixed income tax on mobile devices above $350 is eliminated.
Lux with Yasmine Sabry pays tribute to Front-line workers amidst Coronavirus
According to the announcement, the fixed income tax on mobiles ranging from $351 to $500 has been raised to Rs 2,000 and the tax on mobiles from 500 to Rs 6,300. Currently, 16 companies are making mobiles in the country, most of which are making feature phones.
In a statement, the ministry said that 16 companies are currently making mobiles in the country, most of which are making feature phones and companies are shifting to smartphones based on 4G and 5G, while the local industry is satisfied with the policy. Is expressed.
