New tax plans decline cell phones sales

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The government’s decision of imposing new taxes has badly affected sales and import of cellular phones, according to a report in local newspaper Dawn.

Sources told the newspaper that from April 4, importers and distributors have stopped getting clearance of their consignments of cellular phone at the port.

Dealers said that customers were reluctant to pay an additional amount of Rs 500 on low-cost cell phones, which earlier used to cost Rs 1,000 to 1,200. On smart phones, end-users are now made to pay an additional amount of Rs 1,000 after the imposition of taxes.

Teletec Mobile Director Azad Lalani said mobile phones sale has dropped by at least 25 to 30 percent after the government decision. Imports have also slowed down after April 4.

He said 80 to 85 percent people use low-cost cell phones which are within the price of Rs 3,000. After the imposition of Rs 500 tax, most of the people are reluctant unable to purchase the low price phones.

United Mobile Manager Sales Noman Zakariya said that sales have plunged by more than 50 percent of the low cost cell phones due to the imposition of the new tax. “Our imports have come down drastically,” he said.

The figures of Pakistan Bureau of Statistics (PBS) for April reveal that import of cell phones rose from $536m in July 2012 to March 2013 from $514m in the corresponding period of last fiscal year.

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