Depending upon the feature of the Mobile, Government will levy tax on low-end phones up to PKR. 300. This is the direct increase from PKR. 150. Moreover with medium to high-end devices, PKR 500 and PKR. 1000 will be levied as tax. This is a direct increase from PKR. 250 and PKR. 500, respectively.

Federal Government Decides To Double Sales Tax On Mobiles

The numbers though did not seem big enough but the worst effectees of the tax will be low-end market. Pakistan poses immense potential for the growth of high-end low cost smartphone market but taxes like this may prove harmful to the expansion of various venture planned for near future.

Also, the Punjab Govt is also turning the game downwards by levying tax on internet usage. With cost of 4G/3G going up and cost of mobile phones going up, what is the logic behind imposing such heavy taxation. With continuation of such policies government is actually posing a heavy threat to what can be accomplished and could be achieved in the coming years.