Exciting news for both mobile phone and car enthusiasts, as the government has announced a significant decrease in regulatory duties on the import of mobile phones. This move comes as a relief to consumers who have been facing higher prices due to heavy taxes imposed by the government.
Reports indicate that imported mobile phone prices have dropped by 25% following the government’s decision to remove regulatory duties. Rizwan Irfan, President of the Electronic Dealers Association (EDA), confirmed that prices have started to decrease in the market. He estimated that a mobile phone worth Rs. 30,000 is now available for Rs. 22,500 after the removal of regulatory duty.
Interestingly, while imported mobile phones have become cheaper, locally manufactured mobile phones have not seen a significant reduction in prices. This has led to an increased demand for non-PTA (Pakistan Telecom Authority) mobile phones as a result of the higher prices of locally manufactured ones.
In addition to the reduction in regulatory duties on mobile phones, the government has also decided to eliminate taxes on imported cars up to 1800 cc. This move will be a relief for nearly 500 to 700 imported cars that were stuck at the airport due to a shortage of foreign currency. The government’s decision to reduce taxes on other items such as home appliances, high-tech mobile phones, footwear, furniture, and even pet food, will also be welcomed by consumers.
It is worth noting that the decision to impose heavy taxes on imports was made by the government to reduce imports and increase revenue. However, the policy did not produce the desired results, and the government had to make adjustments to provide relief to consumers. The Tariff Policy Board declined to extend two Statutory Regulatory Orders (SROs) that imposed tariffs, leading to a decrease in regulatory duties on mobile phones.
While the reduction in taxes is good news for consumers, it is important to note that the inflation rate and economic crisis may offset the benefits of the lower prices due to currency devaluation. Furthermore, the low production and poor quality of locally assembled cars mean that consumers have no choice but to import used cars. Nonetheless, the reduction in regulatory duties is a welcome relief for both mobile phone and car consumers, who have been struggling with high prices for some time.