Budget 2024-25: Mobile phones prices to shoot up after additional taxes

ISLAMABAD: the federal government on Wednesday announced its plan to raise taxes on various mobile phones in the 2024–2025 budget. The federal administration has declared a comprehensive overhaul of the current tax system, leading to significant changes across several sectors.

A central element of this reform is the imposition of an 18% sales tax on a variety of mobile phone categories, a move expected to impact both consumers and the telecom industry considerably.

The Finance Ministry’s latest budget proposal includes several major decisions, such as eliminating numerous sales tax exemptions and introducing standardized tax rates on a wide array of goods.

Notable changes include the imposition of withholding tax on commodities like copper, coal, paper, and plastic scrap. The government will also end tax exemptions on the import of luxury vehicles and increase taxes and duties on imported vehicles valued at fifty thousand dollars or more.

Moreover, the new policy removes the import duty on glass products, likely to support the local construction industry. Conversely, duties on the import of steel and paper products will rise, reflecting the government’s aim to protect domestic manufacturers from international competition.