In the upcoming fiscal year 2024-25 budget, the prices of imported mobile phones are anticipated to rise as the government plans to increase taxes on these devices.
Insider sources indicate that the new budget will include provisions to heighten the tax burden on imported mobile phones, notably through the imposition of federal excise duty.
Furthermore, regulatory duty and Pakistan Telecommunication Authority (PTA) tax on imported luxury mobile phones are likely to see an increase. These measures aim to foster local smartphone manufacturing by making imported devices less competitive in the market.
Conversely, the budget is expected to offer incentives for local smartphone production. Sources suggest anticipated tax reductions on the manufacturing of mobile parts, batteries, chargers, and headphones. These incentives aim to promote domestic manufacturing and stimulate growth within the country’s mobile phone industry.
Meanwhile, the federal government, led by Prime Minister Shehbaz Sharif, has proposed an allocation of Rs5.63 billion for the Ministry of Defence’s development projects in the 2024-25 budget. This allocation encompasses 29 key projects, underscoring the government’s commitment to enhancing military infrastructure and technology.
According to the budget document, Rs3.92 billion has been earmarked for nine ongoing projects within the Ministry of Defence.
