Flat Tax Rate of Rs. 250 Imposed on all Mobile Phones
By Aamir Attaa · Friday, Aug 29, 2008
Disputes, Gadgets, Government, Industry, Telecom, economy, news
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In a recent development to tackle the economic crisis in our country, the government has decided to impose duties on 380 items (called as luxury items). My focus point is the handset industry that has seen a flat tax imposition of Rs. 250 per handset, regardless of its price or model.
This recent increment in tax is other than the one that was imposed in budget 2008 @ Rs. 500 per mobile phone. Hence the total tax on the import of a mobile handset would be now Rs. 750.
I have discussed before about heavy taxes on Telecom services, handsets and telecom equipment and their bad impact on our cellular growth rate and the revenues that our cellular companies have been earning.
Besides, the worst thing in this flat increment is that it will hit both the rich and poor alike, though the government says that taxes are on luxury items but they need to correct themselves as mobile phone is not a luxury item anymore.
Recent increment in taxes on handset is going to badly disturb the prices of low end phones. And we may see a bad impact on the sales of handset and ultimately the cellular connections.
Via [Pro Pakistan]
Tags: budget, economy, growth, handset, Industry, mobile phone, price, tax
With regards to tax imposition on mobile phone handsets, it is a bad planning. They are depriving government from a regular income of CED (VAT)of 21%. It is estimated that government earns more in shape of 21% CED on using telecommunication services.
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