The Karachi Electronics Dealers Association (KEDA) and The Federal of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to reduce sales tax on mobile phones. KEDA and FPCCI Appeals for Reduction of Sales Tax on Mobile Phones as higher rates will promote smuggling and misdeclaration.
In an appeal to Prime Minister Nawaz Sharif and Federal Minister for Finance Ishaq Dar KEDA and FPCCI requested to reduce sales tax on feature phones (Category-A) to Rs150, which has been raised to Rs650 per set in the Federal Budget 2017-18 as compared to Rs300 in the budget for the previous year.
The sales tax on mobile phone (feature category), which is comparatively a basic and cheaper phone, has been raised from Rs. 300 to Rs. 650 per phone along with an additional regulatory duty of Rs. 250.
This means that the total taxes and duties have increased by around 112% on an imported phone of Rs. 800 only, which is sheer injustice not only to the concerned traders but also to the poor segment of society.
Former president of Karachi Electronic Dealers Association (KEDA) Muhammad Idrees said:
“In fact, this step will prove counterproductive as it will discourage legal imports and encourage smuggling, which will not only affect the local business activities and raise unemployment but will also result in loss of revenue to the national exchequer.”