Cell phone sale drops after new tax

Staff Report ISLAMABAD: Sale of new mobile phones dropped by almost 30 percent after imposition of Rs. 500 tax on feature phones and Rs 1,000 on smartphones, while on the other hand the mobile phone traders have protested against the decision and urged the President and te Prime Minister to take back the decision, which has increased the prices of cell phones by Rs 2,000 to 3,000 on average.

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“About 80 to 85 per cent mobile buyers go for low-end phones ranging from Rs 2,000 to Rs 3,000, however, with increased prices this major chunk of buyers is now reluctant to spend on mobile phones,” said Azad Lalani, Director Teletec, a mobile phone distributor in the country, while commenting on this new market situation emerged out of the new tax imposition.

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He further said that after the imposition of Rs500 tax, many people are unable to purchase the phones.

United Mobile, on the other hand, said that their sales plunged by more than 50 per cent after the imposition of new tax on mobile phones.

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“People belonging to low-income are unable to accept the new price hike and hence not making any purchases,” said Manager Sales, Noman Zakriya.

The business community and mobile phone traders are fearing this price hike will further encourage illegal trade of mobile phones resulting in no revenues for the government and legitimate traders.

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