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Locally Built Mobile Phones to Have Lower Taxes

Tax Laws (Second Amendment) Ordinance, 2021 has included locally manufactured mobile phones in the list of goods subject to a reduced rate of ‘minimum tax’ of 0.25 percent from March 22, 2021.

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FBR officials told Propakistani that the dealers, wholesalers, and retailers of fast-moving consumer goods, fertilizers, sugar, cement, and edible oil are subject to minimum tax under section 113 of the Income Tax Ordinance 2001 at the rate of 0.25 percent subject to certain conditions. Now, the Tax Laws (Second Amendment) Ordinance, 2021 has also added locally manufactured mobile phones to the list of goods subject to a reduced rate of 0.25 percent.


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Through the Tax Laws (Second Amendment) Ordinance, 2021, sources said that the government has also withdrawn income tax exemption on profits and gains derived from an industrial undertaking, duly certified by the
Pakistan Telecommunication Authority, engaged in the manufacturing of cellular mobile phones, for a period of five years.

Mian Abdur Rehman, Chairman Pakistan Mobile Phone Manufacturers Association, said in a video message that the Pakistani government was previously charging 1.5 percent turnover tax. Now, they will charge only 0.25 percent.

He said that this is great news for all the stakeholders.

Mian thanked all the government institutions that were part of this decision. He added that the mobile industry players will make Pakistan the hub of exports of the mobile industry.

“If China, Vietnam, Korea, Hong Kong and Japan can become the hub, why not Pakistan can be the one as well?” he said.

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