Pakistan will likely experience a reduction in mobile phone prices following a reduction of regulatory charges and Additional Custom Duties (ACDs) on the entry of over 600 luxury and non-essential commodities by the Government of Pakistan. This is expected to reduce the mobile phones prices in Pakistan.
According to the information, the regulatory duty (RD) on mobile phones has been halved across all categories following the expiration of the Statutory Regulatory Orders (SROs), which indicates that smartphone costs in Pakistan can be expected to fall significantly.
The regulation on the lowest mobile phone up to $30 has been decreased to Rs. 300 per set, while the RD on mobile phones up to $100 has been set at Rs. 3,000 per set, and the RD on mobile phones up to $200 is now Rs. 7,500.
Similarly, the regulatory duty (RD) on mobile phones from $201 to $350 is now Rs. 11,000, while phones worth more than $350 but less than $500 will be charged Rs. 15,000. Finally, the regulatory duty on mobile phones costing more than $500 will be Rs. 22,000, with an additional 25% sales tax.
Pakistan Mobile Phones tax calculator
| Mobile Phone Value in USD | Regulatory Duty (PKR) |
|---|---|
| Up to 30 | 300 |
| Above 30 and up to 100 | 3,000 |
| Above 100 and up to 200 | 7,500 |
| Above 200 and up to 350 | 11,000 |
| Above 350 and up to 500 | 15,000 |
| Above 500 | 22,000 + 25% Sales Tax |
Reasons for high mobile phone prices in Pakistan
There are various reasons for high mobile phone prices in Pakistan, and one of the main factors is tax and regulatory duty. These fees can significantly increase the cost of importing mobile phones into the country.
Hight Import Taxes
In Pakistan, the government imposes high import taxes on mobile phones. The amount of tax depends on the value of the phone, but it can be as much as 52% for expensive devices. This tax can add a considerable amount to the overall cost of the phone.
High Regulatory Duties
Along with import taxes, there are also regulatory duties that apply to mobile phones. These are charges imposed by the government to regulate the import of specific goods, and they can contribute to the overall cost of the phone.
Currency Exchange Rate
The exchange rate between the Pakistani rupee and the US dollar can also affect mobile phone prices. If the value of the rupee declines against the dollar, it can make imported goods, including mobile phones, more expensive.
Profit Margins
Retailers and distributors may also add their markup to the cost of the phone, which can further increase the price. Profit margins for these businesses can vary, and they can charge what they believe the market will bear.
Conclusion
Despite the high mobile phone prices in Pakistan, there are efforts to reduce the tax burden on these devices and make them more affordable for consumers. These efforts are ongoing and could help bring down the overall cost of mobile phones in the country. One of such effort now has reduced the mobile phone prices in Pakistan which will not only increase the imports but also will make the overall mobile phones market better.