Mobile Phone Sales Drop Significantly After Imposition of New Tax

Mobile Phones, PakistanSale of new mobile phones dropped by almost 30 percent after imposition of Rs. 500 tax on feature phones and Rs. 1,000 on smartphones, reported Dawn news citing Azad Lalani, Director Teletec, a mobile phone distributor in the country.

Mobile phone traders have protested against the decision and requested the President and Prime Minister of Pakistan to take back the decision, which has increased the prices of cell phones by Rs. 2,000 to 3,000 on average.

Azad Lalani, while speaking with Dawn.com, said that 80 to 85 percent mobile buyers go for low-end phones ranging from Rs. 2,000 to Rs. 3,000, however, with increased prices this major chunk of buyers are now reluctant to spend on mobile phones. “After the imposition of Rs500 tax, many people are unable to purchase the phones”, maintained Mr. Lalani.

United Mobile, on other hands, said that their sales plunged by more than 50 percent after the imposition of new tax on mobile phones. Manager Sales, Mr. Noman Zakriya, was quoted as saying that people belonging to low-income are unable to accept the new price hike and hence not making any purchases.

Business Community and mobile phone traders are fearing that this price hike will encourage illegal trade of mobile phones resulting in no revenues for the government and legitimate traders.