Mobile makers seek tax reform to boost accessories production

The mobile manufacturers have expressed confidence that the new government will streamline a key loophole in the taxation system to promote the local assembly of mobile phone accessories in the country. They have pointed out that this lacuna currently permits the import of finished products at zero rates while imposing heavy taxes on raw materials. The Pakistan Mobile Phone Manufacturers Association (PMPMA) wrote a letter to the Engineering Development Board (EDB), asserting that the current taxation regime restricts the local assembly of mobile phone accessories in the country. They emphasised the need for a cascading tariff on mobile phone accessories. A senior member of the association told Dawn that due to this mismatched taxation regime, there is currently no assembly plant for mobile accessories in the country. The matter is expected to be resolved by the new decision-makers taking charge in the coming days, he added.