In the recent chaos of inflation across the country, the government of Pakistan has imposed an increase in import taxes. This comprises raised income taxes, sales taxes, regulatory duties, and more. Therefore, the increase of import taxes has also increased taxes on smartphones to a point that a flagship phone’s taxes are as high as Rs. 60,000.
The Increase of Import Taxes Can Reduce Trade Deficit
In a recent interview, PM Imran Khan has explained the increase of import taxes on smartphones in an interview with Hum News. During the interview, the PM clarified that he wants to encourage local production of smartphones. This is due to the rising level of imports and an increasing trade deficit can have a negative consequence on a country’s exchange rate.
Read more: Punjab Finance Department Collects PKR 50 Billion Tax Revenue Through e-Pay Punjab
This can put increased pressure on our currency and cause even more inflation altogether. Tech organizations such as Samsung, Xiaomi, and Oppo are interested in manufacturing smartphones locally in Pakistan and have already begun operating on them as well.
A Large Number of Pakistani Citizens Do Not Pay Taxes
In addition to this, PM Imran khan stated that tax collection is essential for a country’s development and growth. A large number of Pakistanis do not pay taxes, which is why Pakistan ranks among the nations that pay the least amount of taxes. He states that decades of nationwide problems cannot be resolved in a few years if people don’t even pay taxes.
Check out the interview clip below.
Source: Pro Pakistani
