Increase in tax on mobile phones: Which phone will cost how much now?

The regulatory duties on the import of mobile phones have been increased in the range of 32% to 240%, depending on the cost of the imported mobile phone.

A simple handset having just a $30 value will now attract Rs300 – up by Rs135 or 82%.

A smartphone of even value of less than $30 and a regular phone of value between $30 but not exceeding $100 per set has been slapped with Rs3,000 per set duty – higher by Rs1,380 or 85%, according to the notification.

The mobile set of $100 to $200 will attract Rs7,500 duties – up by Rs5,070 or 208% – the second-highest increase for a set normally used by middle-income groups.

The set having a value above $200 to $350 will attract Rs11,000 duty – an increase of Rs7,760 or 240% – which is the highest increase both in absolute and percentage terms.

The handset worth $350 to $500 at the time of import will attract Rs15,000 duties – higher by Rs5,500 or 59%.

Similarly, a handset worth above $500 is slapped with Rs22,000 duty – up by Rs5,350 or 32%.

The government has decided to increase import duties on handsets at a time when these are in high demand due to online classes being taken by the students.

This was the reason that the country imported $1.9 billion worth of mobile phones – up 63% – during the July-May period of the last fiscal year.

How expensive will mobile sets be?

According to mobile phone dealers, import duty on mobile phones from $100 to $ 300 should have been reduced as in this slab mobile phones are needed by the common man but their import duty has been increased by 200 per cent.

He further said that the smartphone which should be available at Rs15,000 to Rs 25,000, customers are getting at Rs30,000 to Rs40,000 in Pakistan but after the budget, the same smartphones will no longer be available at less than Rs50,000.

He said that the government has reduced the customs duty on mobile sets costing more than $350 while the relief should have been given on mobile phones costing $100 to $300.

Smartphones worth Rs70,000-80,000 are not needed by a common man. A common man needs a good smartphone for Rs25,000 to30,000 but the government has not given relief to this class.