Increase in the sales tax on import of standard and high class smartphones by the government has massively affected the overall import of mobile phones. In comparison with last year, the import of mobile phones has dropped over 15% in the first quarter (July-September) of 2016.
The current data released by the Pakistan Bureau of Statistic (PBS) indicates 20% decrease in mobile imports in September. In comparison to the same period of last year, it stayed at $53,855 contrary to $67,482.
According to the PBS data, $146,562 worth imports of mobile phone was recorded in the first quarter of the present financial year as compared to the same duration of last year which was $172,560.
Analysts believe that the increase in sales tax is the main reason behind the decrease of mobile imports. According to the (2016-17) budget, sales tax on standard and high class smartphones has been doubled i.e. from Rs 500-1000 and 1000-2000 respectively. As a result, the rates of smartphones have gone sky high and the customers are bearing it all.
The current data by PBS is a proof that this increase on mobile imports may encourage imports through smuggling.
Decrease in telecom imports too
As compared to fiscal quarter of last year, the overall telecom imports also decreased by over 11% in 2016. As compared to $312,790 in first quarter (July-September) 2015, total imports were noted to be $277,694 this year. It clearly indicates that the imports have decreased over 13.67% as it is $103,224 in September 2016 contrary to $119,568 in September 2015.
In contrast with first quarter of 2015, other telecom tools also reported major decrease of over 5% in the import. It stayed at $131,132 in first quarter of 2016 contrary to $139,930 in the same period of 2015. It can be seen that telecom tools import have decreased over 5.22% ($49,260) in 2016 as compared to $52,086 in 2015.
Experts believe that the decrease in overall telecom import is acceptable as it has become flooded with investment and other resources.
Nevertheless, in the coming two years, imports of smartphones are likely to increase by 55% of mobile imports. More smartphones are expected to be embraced as the 3G and 4G services are expanding day by day and much cheaper smartphones are available in the market.
Source: ProPakistani
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