The Pakistani government has announced a reduction in regulatory duties on imported mobile phones and used cars up to 1800 cc. This decision aims to provide relief to consumers facing higher prices due to heavy taxes on imports.
The reduction in regulatory duties has resulted in a decline in mobile phone prices by 25%. And They are providing significant relief to mobile phone users. Rizwan Irfan, President of the Electronic Dealers Association (EDA). They have confirmed that after the removal of regulatory duties, mobile phones have become 25% cheaper in the market. This has made imported mobile phones more affordable for consumers.
The reduction in regulatory duties will not affect the prices of locally manufactured mobile phones. However, it has increased the demand for non-PTA mobile phones.
Pakistan Withdraws Regulatory Duties On Mobile Phones: Big Decrease In Prices expected (Provide this government lasts). https://t.co/ANcL5dJix4
— Trusfrated 엄마 (@hinasafi) May 5, 2023
The government has taken this decision to reduce imports by imposing hefty taxes, but it did not produce high revenues. The decision to eliminate the tax was made to provide relief to consumers facing higher prices due to taxes on imports.
Statutory Regulatory Orders
The expiry of two Statutory Regulatory Orders (SROs) has resulted in the reduction of regulatory duties on mobile phones. This reduction will help importers of used cars up to 1800 cc, who will be completely exempt from regulatory duties.
The government has reduced the duty tax on old and new cars. Also, home appliances, meat, high-tech mobile phones, footwear, furniture, and dog and cat food. The foodstuffs ice cream, provide relief to consumers facing higher prices.
Nearly 500 to 700 imported cars of different engine capacities that got stuck at the airport due to the non-availability of foreign currency will also benefit from the reduced taxes.
However, due to the low production and poor quality of locally assembled cars, people have no choice but to import used cars. The current inflation rate and economic crisis have badly affected car consumers.
The reduction in prices due to the reduction in regulatory duties may be offset due to currency devaluation.
In conclusion, the government’s decision to reduce regulatory duties on imported mobile phones. And the used cars up to 1800 cc is a positive development that will benefit consumers facing higher prices due to taxes on imports.
However, it remains to be seen how much relief this decision will provide given the current economic crisis and inflation rate.
