Government Doubles Sales Tax on Mobile Phones

In the new budget for the fiscal year 2015/16, the government of Pakistan has doubled the sales tax on mobile phones.

Depending on the features in the mobile phones, the tax has increased to Rs. 300, 500 and 1000 from Rs. 150, 250 and 500 respectively. This tax is in addition to the SIM activation tax, which telcos already pay out of their pocket.

While the numbers may seem small, the worst affectees of this tax hike are going to be low income individuals and the low end market segment. Smartphone growth is all great but the true potential lies in connecting the unconnected and anything that draws them further away from technology should face tough questions.

We recently broke the news that Punjab is introducing a 19.5% tax on internet usage and this development serves as another blow to an industry already reeling from shock. With the cost of internet going up and cost of phones rising as well, you have to question what’s the logic behind it all.

The growth in number of internet users has been quite remarkable with 3G/4G numbers rising to 13 million recently. With a continuation of discouraging policies, the government is posing a real threat to all that has been accomplished and could be accomplished.

Talal is the Editor in Chief at ProPakistani.


  • Ahmed Habib

    Sounds like propakistani truly is pro poti leage…

    First of all yes the tax is doubled but have you read with open eyes that the one of the tax has been exempted??? Which result in no change in the tax department for mobile.

    Truly you are insane blogger.

    • DJ

      Please explain with some calculation what you are trying to say ..

      • Dr. Aamir Liaquat Hussain

        Rs 200 charged on every mobile handset earlier. Now you only pay tax based on the features which is doubled.
        The high amount here is 1000 Rs. which is charged on flagships or high end phones. I guess those who buy these phones should be taxed more.
        For basic cell phone there is is 50 rupees less now and for next category rs 50 more and for high end phones 300 rs extra.

        • aamir7

          Can you please enlighten us a little, as to which clause of the finance bill you are referring to?

          I mean how exactly are you suggesting that Rs. 200 was charged on every phone earlier and which document are you reading?

          Please give reference, section number, clause number or I will believe that you are just confusing our readers.

          • Budget

            Probably false flagged:
            The bill propose to increase the sales tax
            rates by double amount, where sales tax previously mentioned was Rs. 150, Rs. 250 and Rs. 500, it has been increased to Rs. 300, Rs. 500 and Rs. 1,000 respectively.

            • Dr. Aamir Liaquat Hussain

              there is regulatory tax which was removed

          • Dr. Aamir Liaquat Hussain

            dont troll now
            i can mention everything.
            explain your article with all clause and sections first so readers realize about false and true reporting

          • Dr. Aamir Liaquat Hussain

            rs 200 is regulatory tax which is removed.you know this but didn’t reported.
            asking clauses..first mention them

        • Alee Ahmadd

          Fake degree…exact degree…
          Dum hai tou apni degree dikha…kaika Dr jali,mula

      • saleem

        Paindu

    • Kamran J

      Patwari sahab.. aatay hi bongian marni shoru kar deen?

      • Mohsin Alee

        lolx

    • Salman Qamar

      Mohtaram patwari sahib. Boht ha ya aur dose chahye

      • Raja Maja

        SALLU bhai kia bat hai aap ki agar aap ka aik haath farigh hai to us say apni PoTI saaf kar lein………….ha ha ha

    • aamir7

      Can you please enlighten us a little, as to which clause of the finance bill you are referring to? Which tax is exempted, can you please share more details?

      • Ahmed Habib

        Yes, I will share don’t worry today/tomorrow.

      • Ahmed Habib

        Regularity duty cancelled and the sales tax doubled, so what’s the difference here? Regulzrity duty was 250-1000 and sales tax is 150-1000. Sales tax will be higher for high end devices and thats a great step.

        • Raja Maja

          You are Right Ahmed Habib, Aamir7 this was explained by the post finance meeting my Ishaaq daar as well if you have seen.

        • Dr. Aamir Liaquat Hussain

          he was just paid to report such things..else i am 1000 % sure that he didn’t read the budget document or even listen to the budget speech

      • Dr. Aamir Liaquat Hussain

        http:// www . aaj . tv/2015/06/regulatory-duty-on-mobile-phones-to-be-abolished/

    • anas qamar

      I can’t believe the amount of bullshit there is in this comment. Yes, even if you ave to pay more taxes, you are still ‘happy’ and ‘ready to defend your political party’. That’s called being a ‘fanboy’.

  • Zawyar Ur Rehman

    Looks like Anti-pakistan league is trying to sabotage all that the telecom industry has acheived so far in the last year.
    and they’re succeeding well in it.

  • Ahmad

    loot rae hen ji bar ke Pakistani awam ko aur sara paisa mulk se bahir apne bank accounts mei jama ker rae hen,

    lanat un per jo abi be noora league ko support krte hen

  • Salman Qamar

    Awam ny tax k chitar khany k.liye hi to inhain hakoomat di ha

  • Dr. Aamir Liaquat Hussain

    Regulatory duty on mobile phones cancelled in this budget and sales tax doubled.
    Hawaldar propakistani is always hiding some truth and shows negative side only.
    change your name to AntiPakistani

    • Raja Maja

      Aaamir bhai aap to Chaa gai.

  • Dr. Aamir Liaquat Hussain

    I also want to mention that the normal sales tax is 16 % but on mobile phones we didn’t pay that much. we hardly pay 2% sales tax but still crying over this tax.

    • DJ

      Looks like you never got degree from Axact :P

      • Shahzaib Rehman

        Exactly ! :P

    • Majid Khan

      Degree degree hoti :D

  • engrrana

    While reading all coversations it shows our mental approach. Onve there was a king was very cruel he used to tax on every person and on all things. He died and his son becomes the king. People went to him and told him aboit the difficulties and cruel act of his father the king ordered to double rhe taxes and hit every one with hunter also. There is the same scenario in PAK Gov used to tighten the screws on public and public just obey like a slave without doing any protest. In the end (wohi rona dhona ke zulm bohat hai. Jab buray ko bura nahin kaho gay to bura lagnay ki bat hi khatam ye log agar 100% tax laga dein tab bhi koi kuch nahin kare ga koyun ke ye hamara masla nahin hai hamain kiya ye to jo kahrida ga ya istemal kare ga us ka masla hai. Bahaisiat quom no problem).

  • Abdul WAHAB

    Ye Howi Na Bat, Aj K Generation ko Bus Status Upload Karne Se Matlab hai, Sahi Hai Ishaq Dar Hum Tumhary Sath Hai

  • Malik Abbul Wahab

    Bad news

  • Shahid Iqbal Butt

    good policy .

  • Raja Maja

    Dear Aaamir,
    did you gone through the post finance meeting, please do not miss guide by the blogs, you know you have big followers and “more you have power more responsibility on you”. please it is a request.

  • G

    Islamic system mein to taxes he nai hote aur vote do Anglo-saxen law ko

    • Muhammad Yasir

      who the effing hel are u ?! some jamiat guy ?!
      Man , this cursed country was built on foundations of so-called religion and look where religion has bought u…
      Taliban , Saudi Arab , Sectarianism and what not !
      oh and just to rub it in… look how far India got , so ahead of us despite a billion population.
      Taxes are NOT imposed by religion … its called Economics and Political Bureaucracy. MQM , PML N , PPP , PTI … i could name these criminals all day. all they do is suck this country dry and nothing more….

      First correct your own mindset… mend your own ways. Think out of the box. Think why havent we breached the limit of innovation that less privileged countries in africa and asia have…

      • Mawlana Diesel

        You sound like a retarted moron who should be on 20mg Melatonin every 2 hours.

        Religion brought us Prophet Mohammad (pbuh), Imam Ghazzali, Mawlana Rumi, Sheikh Saadi, the noble 4 caliphs of islam who ruled justly over 3 continents and you call religion a producer of Taliban and Sectarianism?
        Taliban was created by your secular white skinned American Masters. Saudi Royal Family was installed by the Brittish Government. These are not byproducts of Islam.

        You sound jilted and disturbed. You should take some more alcohol so your secular anti islamic nerves can calm down a bit. Even today Al Qaeda and ISIL are supported financed and aided by Western Governments to collapse middle east in the hope of their pathetic Arab Spring vision while at the same time these hypocrites fund and provide weapons to royal families of Saudia, UAE, Bahrain, Qatar, etc.. ISLAM HAS NOT PRODUCED THESE ROACHES. THESE ROACHES ARE BYPRODUCTS OF SECULAR POLITICAL WESTERN AGENCIES AND GOVERNMENTS who are adamnant to use the word ISLAM as a shield to disparage our beautiful religion which produced countless mystics, phillosophers, healers and geniuses like Ibn al Arabi, Ibn e Sina, Ibn e Rushd etc…

        It is sick people like you who give reason to the blasphemers in West to make cartoons of our Prophet (s) because just like you they also think Muhammad (s) is the reason of all terrorism and fanaticism.

        Innovation in Islam does not mean you suck the blood of people through taxes which are not levied by God or his messenger or their caliphs who JUSTLY ruled more land then any of you scoundrels of Democracy and Capitalism!

        ISLAM is not a mere proclamation of few verses of Quran and Kalima. I am sure you cannot even pronounce a few quranic verses correctly let alone know their translation. Islam, as anyone can see, right from its scripture, is a SET OF LAWS and code of life for all TIMES to come…..yes not just for 1400 years ago but ALL TIMES TO COME…i know your secular or atheistic tummy will find this very hard to digest.

        INNOVATION in islam or IJTIHAD is only practiced in the matters of religion which have not been explicitly declared in Quran or Hadith. Innovation does not mean introduction of PARALLEL laws or unjust taxes over populations in the NAME OF LIBERTY TO INNOVATE! You cannot innovate for laws which are already in place. You cannot play GOD with people. This is why we reject a society that rejects divine law and replaces it with SECULAR ANGLO SAXON Bullshit created by your VICEROY LORDS and golden haired blue eyed FAGGOTS who you and your ancestors have been worshipping for long!

      • Mawlana Diesel

        Taxes are given by government and the best form of government was given by those who were not only divinely appointed by God on Earth but also ruled vast swathes of land justly. And they ruled by the law of God, by the divine law of the book. They never introduced new fabricated laws to suck the blood of people. This was done by those who beleive religion has nothing to do with government! Can these apologetics dare to say prophet mohammad (s) ruled Madina without the rule of islamic religion as the law of his land!? Not even in their wildest dreams or wishful thinking can these idiots utter such a nonsense blasphemy. The entire life of the prophet (s) as a ruler is based on formulating economic, political and civil laws based on Quran / Hadith (divinely inspired sources). He never gave power to make economic law by some OTHER government cos his WAS ISLAMIC!? did he!? u people are such fools, it is astonishing how secular anti-islamic atheists, fascists and agnostics funded by liberalism have polluted your thoughts to the extent that you do not even realise that your arguments are not just an attack on an ordinary man but the VERY MESSENGER OF GOD and QURAN and the SUNNAH of PROPHET (s) and HIS COMPANIONS (s) and their HOUSEHOLDS

        • Muhammad Yasir

          im not attacking anyone u dumbo !
          just re read it again. in a nutshell , all im saying is how people have MISUSED the very thing they were NOT supposed to and laid waste to this place. DONT blame the laws or a prescribed system for administration but the mindset people used through it and did everything wrong with this scapegoat of a country…

    • Mawlana Diesel

      what you have said is correct but now the haters of anything even with the word “Islam” in it will call you fanatic, backward, etc… because these slaves of capitalist white skinned masters do not believe in Islamic laws or economy. Islam predates all Islamic political parties like Jamiat or Jamaat e Islami. These immature and naive attackers should know their insult is directly upon the Quran and Prophet of Islam when they attack those who speak of implementing a tax free islamic economy. The fanboys of western capitalism would rather lick the balls of anglo saxon masters then be proud owners of islamic economy, system of governance and/or culture. They will ridicule the slaves of Allah or Islam, but would happily and proudly boast to be slaves of Europe, USA and their secular atheistic and capitalistic laws and way of life.

  • Mawlana Diesel

    In this god damned nation of Pakistan, many people will worship Nawaz Sharif, Shahbaz Sharif, Asif Ali Zardari and the rest of the politicians from all parties including JUI, JI, MWM, PAT, PTI, ANP and MQM to the extent that they will find it a blasphemy to speak against their Anglo-Saxon corrupt and unislamic policies. However, if someone spoke in favor of islamic economy as practiced by the Prophet of Islam and the four caliphs of Islam, they will go to any extent including committing: blasphemy, ridicule and abuses…

    This is the hellish culture which secular democracy has created for muslim youth today. They will disparage you for holding a book of quran or hadith and speaking from it but they will praise you for holding a latest smartphone in your hand and browsing facebook on it. Now internet is either a medium for chatting, watching porno movies, twitter fights between politicial fanboys, facebook dating or for playing video games. (except for a very very few mature people who actually use it for legitimate work)

  • Mawlana Diesel

    Pakistani political system, laws, judiciary and the entire league of politicians are corrupt. Unless they are not completely wiped off by the might of the public, nothing will change in this country. Each plunderer comes with new promises and excuses, and then goes away ruining the nation as if it was his father’s agricultural land. The people of this country are blind. Every 5 years they turn from one wolf to another, for pleasing their American and European Gods about their unflinching support for Secular Democracy. In return their masters enslave them through IMF, World Bank, Nawaz Sharif, Zardari, Fazlur Rehman, and countless other icons from a broad spectrum of political parties including PAT and PTI.

  • Mawlana Diesel

    All terrorist groups working under the banner of islam are directly funded and guided by America, Israel and European Countries and their Asian partners. The purpose of this is to not only destroy the Global image of Islam but to also destroy the muslim culture, unity and infrastructure but to also steal away resources from our land through a constant state of fear by keeping the Western stooges/agents (rulers of islamic lands) under control through threats from these gangs of terrorists. Why? Obviously because the west would not like any of their stooges to become so powerful that they become rebellious! This is why every now and then a freedom fighter is declared terrorist and an ally (like hosni mubarik or bhutto) is punished like a dog.