The government’s recent tax incentives have prompted at least three new cell phone companies to set up production plants in Pakistan.
In May last year, the government declared tax incentives for the assembly/production of cell phones, exempting locally assembled and produced phones from a 4% domestic sales withholding tax.
This announcement ignited interest in the establishment of Vivo Mobiles, Airlink and Advance Telecom plants in Pakistan.
The Cabinet’s approval of Pakistan’s first-ever policy of making mobile devices will help the industry. Cheaper mobile sets from overseas countries, especially India, have threatened Pakistan’s local market. The government has abolished the withholding tax on locally generated mobile sets in an attempt to remove the threat.
Mobile Device Manufacturing Regulations 2021 have also been released by PTA where it will be responsible for overseeing and enforcing the policy. Manufacturing/assembly plants would be required under the PTA regulations to provide complete information on land finance, investor nationality etc.
good to go. LG, Philips, Panasonic, Mitsubishi, Siemens, Hitachi, and others multinational companies need to invest and setup the plant in pakistan…it will boost and for better options.