Sale of Mobile Phone Drop Tremendously After Increase in Taxes

Posted By Ismail Ziker on Apr 23, 2013 | 0 comments

Sale of new cellular mobile phones dropped by almost 30% after imposition of Rs. 500 tax on feature mobile phones and Rs. 1,000 on smartphones.

Mobile phone investors have protested against the choice and requested the President and Prime Minister of Pakistan to take back the choice, which has increased the costs of cell phones by Rs. 2,000 to 3,000 on average.

Azad Lalani, while speaking, said that 80 to 85 % cellphone customers go for low-end mobile phones ranging from Rs. 2,000 to Rs. 3,000, however, with increased costs this major chunk of customers are now hesitant to spend on mobile phones. “After the imposition of Rs500 tax, many individuals are not able to purchase the phones”, maintained Mr. Lalani.

United Mobile, on other hands, said that their revenue delved by more than 50 % after the imposition of new tax on cellular mobile phones. Manager Sales, Mr. Noman Zakriya, was estimated as saying that individuals that belong to low-income are not able to accept the new cost increase and hence not making any purchases.

Business Community and mobile traders are worrying that this cost increase will encourage illegal trade of mobile phones resulting in no earnings for the government and legitimate investors.