Government to review duties on mobiles

Hafeez Shaikh-led meeting discusses proposal to allow overseas Pakistanis to bring mobiles without duty

ISLAMABAD: The federal government has decided to review duties and taxes imposed on the import of mobile sets – for rapid digitalisation in the country – and to offer facilities on the local manufacturing of cellular phones.

The decision was taken in a meeting held on Friday at the finance ministry. The meeting was chaired by Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh, the de facto finance minister.

According to sources, the Digital Pakistan Vision chief Tania Aidrus, ruling PTI leader Jahangir Tareen and representatives of telecom companies attended the meeting.

The session deliberated on several recommendations including ensuring the availability of 4G smart phones at affordable prices and promoting the mobile phone manufacturing industry.

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The sources revealed that several Chinese companies are interested to manufacture mobile phones in the country, while the proposal to revise the regulation of cellular phones is also under consideration.

The proposal to once again allow the overseas Pakistanis to bring a mobile phone set without duty, regularisation of imports till the manufacturing of mobile phone sets in Pakistan and rationalisation of duties and taxes was also discussed.

When contacted, representative of a telecom company who attended the meeting termed the decision a positive step and said the telecom companies and handset manufacturers were working jointly to accelerate digitalisation in the country.

He said the finance adviser had urged the concerned stakeholders and representatives from the telecom sector to hold cross-section debate on the subject and stressed on the need for comprehensive consultation.

He said the government was considering various recommendations for promotion of digitalization through broadband penetration, availability of 4G smart phones and local manufacturing of mobile phones.

The sources also revealed that China plans to invest billions of dollars in the manufacturing of mobile phones in Pakistan and has also shown interest in investing in the steel and real estate sector.

Chinese investors led by Chinese ambassador have held meetings with Federal Board of Revenue (FBR) chairman and other officials and briefed about facilities and exemptions on duties and taxes in Pakistan.

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Chinese Mobile Manufacturing Company has expressed interest in setting up a mobile phone set manufacturing plant and Chinese car manufacturing plant in Pakistan.

The Chinese investors were informed that foreign investors who invest in Greenfield were exempted from duties and taxes. The facility would also be extended to those who make new investments in special economic zones.

The sources said the Chinese company is initially interested in setting up one mobile phone manufacturing plant in Pakistan and also intends to introduce Chinese cars in Pakistan with a particular interest in manufacturing small vehicles.

Chinese companies have also expressed interest to invest in the banking sector.