iPhones, other high end devices to become expensive in Pakistan after Budget 2024-25
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All imported smartphones, including Apple iPhones, are set to become more expensive following the Budget 2024-25.
The PML-N led alliance government has introduced new taxation policies that will significantly impact the prices of these devices. With the goal of boosting local manufacturing and reducing the trade deficit, this fiscal year's budget includes higher duties on imported devices.
In the Finance Bill 2024, the sales tax on imported smartphones and IMEI registration has been increased to 25% ad valorem for smartphones priced above $500 (Rs. 139,500).
This higher tax rate applies only to fully assembled smartphones above this price threshold. Partially assembled or unassembled handsets will continue to be taxed at an 18% rate, regardless of their value. Locally manufactured and supplied smartphones will also be taxed at the 18% rate.
For smartphones priced below Rs. 139,500, an 18% tax rate will be applied, irrespective of their assembly status or origin. This change is expected to boost revenue by Rs. 33 billion.
