ISLAMABAD: The government plans to introduce incentives for mobile phone exports. According to insiders, these incentives may help local assemblers and manufacturers of smartphones invest in the manufacturing of parts.
During a meeting on Tuesday, the Ministry of Commerce agreed to expedite the process of introducing incentives for exports, according to Aamir Allawala, a representative of mobile manufacturers and assemblers. He claimed that the policy related to these incentives could be introduced within a couple of months.
During the meeting, representatives of mobile manufacturers, led by Aamir Allawala, demanded a ban on the import of old mobile phones to support the local industry. They also requested a specific rate for the GST instead of the current 18% GST based on value, which, they argued, could lead to misdeclaration of values at the import stage and adversely affect the local industry.
According to them, the 18 percent General Sales Tax (GST) imposed on mobile phones has reportedly damaged the local mobile industry and assemblers.
Federal Minister Jam Kamal Khan, who chaired the meeting, assured that these concerns would be addressed in consultation with the Ministry of Industry and Production, the Ministry of Finance, and the Federal Board of Revenue (FBR). He pledged all possible support to encourage the local manufacturing of auto parts and mobile phones, emphasizing to the industry representatives the importance of keeping exports as their primary goal.
Earlier, the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), led by Chairman Abdul Rehman Aziz, and representatives of mobile phone manufacturers met with Federal Minister for Commerce Jam Kamal Khan to address various issues impacting the local manufacturing of automobiles and mobile phones.
Abdul Rehman Aziz, Chairman of PAAPAM, called for the imposition of regulatory duty (RD) across the board on all old and used vehicles. He explained that 70% of used car imports, which are below 1,300cc, are exempt from the newly imposed RD in the Finance Bill 2024-25. In the budget for 2024-25, a 15% RD has been imposed on imported used cars exceeding 1,300cc at the request of local assemblers. However, this RD did not resolve their issue as small vehicles, which are imported in large numbers, are exempted.
