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The government of Pakistan has imposed yet another flat tax on the import of mobile phones. The tax amounts to Rs. 250 on every mobile set imported in the country. This tax is beside the one already imposed in the two months old budget amount to Rs. 500 per mobile phone. The total tax on the import of a mobile handset amounts to Rs. 750. The amazing feature of this strange taxation system is that it hits the rich and the poor equally while traditionally tax is imposed in such a manner that more expensive items are taxed at higher rate while cheap products are taxed at a lower rate just like the income tax. Even i am totally against taxing the mobile phones when the very purpose for which they are used is highly taxed and even increased in this budget. The GST on telecom sector was only increased in this budget from 16% to 21% and now this added taxation on mobile phones will further corner the only healthy industry of Pakistan. I am sure there will be someone with some sense in the government to spare this industry. Otherwise we will be left with no industry to tax. Related Articles |
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{ 8 comments… read them below or add one }
By taxing telecoms or IT industry the government is doing a disservice to its citizens. I have seen the tax figures for India, Pakistan, Balderdash, Nepal and Siri Lanaka, and Pakistani government imposed more tax on the telecoms and INTERNET then any other country in the region. No wounder technologically Pakistan is far behind compare to its neighbors.
I agree with you on the first part of your comment but on the second part, i think in telecom sector, Pakistan is ranked among the top in the region as well as globally. We are as much technologically advanced as any other country in the world. In fact Pakistan was the first country to undergo nation wide WiMAX deployment by Wateen Telecom. Today we have three WiMAX operators and five GSM operators. We are already having 2.5G and contemplating on moving to 3G in a year.
The mobile penetration is approximately 48% which is very high when compared to the South Asian region.
Anyways, thanks for your input as discussion always adds to everyone knowledge.
i hate my govt. what the hell!!!!!!!!!!!!! :@@@@@ they are *******
@ Junaid, The current mobile penetration is now touching 55% & you are indeed right that in so many areas our telecom industry is competing not only with South Asian countries but also with countries like Philippine & Thailand. My reservation isn’t regarding what we have achieved so far, the problem i can see in our policy maker’s myopic view towards the telecom sector in generall. What impression i am getting so far from the new policy makers is that they are targeting the telecom industry to remedy majority of ills from which the overall economy is suffering (Including high rising import bills & ever decreasing USD reserves) without realizing that this is the industry which generates major employment opportunities from all kind of avenues (From a small mobile phone retailers to a graphic designer working in an advertising agency).
Cheers!
To add another fact our internet penetration is currently embarrassingly low with around 11% internet penetration. (Source ITU)
Cheers!
hmmm! I agree and you know that internet penetration includes 3 million copper lines which is another misrepresentation as all PTCL lines are not used for the ptcl dialup services as they surveys assume. By chance i was in a meeting today with our new regulators and trust me they were totally immune to what the operators were telling them as they know that nothing will bother them from their obsolete thinking.
Further to the above comments, I am hopeful the government of Pakistan will lower the taxes imposed on mobile phones as they are a part of everyday life and global business and if the nation is to ever climb out of the debt ridden turmoil it has got it self into due to the few narrow minded political thieves we must see the bigger picture and stop voting small minded politicians to line their own pockets.
There should be no sentiments, business is business and by reducing costs on our own people and helping the public to compete on an international level we can become the great nation we all dream of.
a total of 750PKR on each phone is not high at all for the people importing these phones,
what you got to remember is pakistan gov needs a income, but the people are not playing other taxes, and even gas and ele/ isnt paid in full, pakistan is currputed from the core out.
And what you got to ask your self is why do people need 30,000 PKR phones ? its just fashion on one part and the people that need phones for work just have standard phones,
its all a bit spaced out in pakistan
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