In the wake of surging inflation, the government of Pakistan has imposed an increase in taxes. This includes raised income taxes, sales taxes, regulatory duties, and more. Naturally, this has increased import taxes on smartphones to a point that a flagship phone’s taxes are as high as Rs. 60,000.
Prime Minister Imran Khan has explained the increase of import taxes on smartphones in an interview with Hum News. During the interview, the PM explained that he wants to encourage local production of smartphones. This is because a rising level of imports and a growing trade deficit can have a negative effect on a country’s exchange rate.
This can put increased pressure on our currency and cause even more inflation overall.
Companies including Samsung, Xiaomi, and Oppo are interested in producing smartphones locally in Pakistan and have already started working on them as well.
The PM further explains that tax collection is crucial for a country’s growth and development. A large number of Pakistanis do not pay taxes, which is why Pakistan ranks among the countries that pay the least amount of taxes. He says that decades of countrywide issues cannot be fixed in a few years if people don’t even pay taxes.
Check out the interview clip below.