Despite the goal of making changes in the smartphone market, the government has yet to implement the largely approved recommendation of the Mobile Manufacturing Policy to abolish the flat sales tax on mobile manufacturing in CKD / SKD, that is, around $ 200.
Concerns were raised about the future implementation of this policy, to which the ministry responded that all approved policy recommendations have been implemented, with the exception of a flat sales tax, which will be implemented shortly.
In addition, the Ministry mentioned that the Division sent a report of non-compliance in the video on December 4, 2020 to the ECC, which in case No. ECC-452/61/2020 dated 16-12-2020 was approved.
In short, this means locally made phones that are worth more than $ 200 will be subject to sales tax waiver after the Department of Industry and Manufacturing receives instructions with the proper conditions, while retaining the Federal Council Finance Department. Revenue (FBR) and relevant stakeholders as consultants.
However, the FBR kept the gap between the CBU and the fixed duty rates for six different plates in line with the cost of importing mobile phones, see FBR SRO 840 (I) / 2021 dated June 30, 2021, further stimulating local smartphone production. …