Government reduces taxes on budget phones, taxes on higher-end smartphones remain unchanged

The Pakistani government announced a mini-budget today in an attempt to boost exports and reinforce investor confidence lost due to varying exchange rate over the past few years.

A number of important decisions were taken during the mini-budget, mainly related to decreasing duty on raw-material being imported into the country. However, the government has also revised the duty on imported smartphones, specifically the budget smartphones valued under $350 dollars. The taxes on higher-end models will remain unchanged.

Here is the breakdown of new tax rates on imported smartphones:

• Below $30
  • 150 Rupees

• Between $30 and $100
  • 1,470 Rupees
• Between $100 and $200
  • 1,870 Rupees
• Between $200 and $350
  • 1,930 Rupees
• Between $350 and $500
  • 6,000 Rupees
• Above $500
  • 10,300 Rupees

Here is the breakdown of new customs levy rates on imported smartphones:

• Below $100
  • No Levy
• Between $100 and $200
  • 500 Rupees
• Between $200 and $350
  • 1,500 Rupees
• Between $350 and $500
  • 3,500 Rupees
• Above $500
  • 7,000 Rupees

Due to these changes, we can expect to see lower priced phones get cheaper, while the prices of higher-end phones should remain at their current price.