Local cell phone makers urge the government to ban used phone imports.

Local cell phone

Local mobile phone makers have requested the government to ban the importation of pre-owned mobile devices in order to bolster the domestic industry.

The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), chaired by Abdul Rehman Aziz, along with representatives from mobile phone manufacturers, held discussions with Federal Commerce Minister Jam Kamal Khan to tackle concerns affecting local automobile and mobile phone production.

 Aamir Allawala and representatives of mobile manufacturers called for a prohibition on importing used mobile phones to bolster the local industry.

They also urged for a fixed General Sales Tax (GST) rate instead of the current 18 percent GST based on the value, arguing that this could encourage undervaluation during imports and harm the local industry.

 The PAAPAM Chairman advocated for applying a uniform regulatory duty (RD) on all pre-owned vehicles. He noted that currently, 70 percent of imported used cars under 1,300cc are exempt from the newly introduced RD under the Finance Bill 2024-25. In the 2024-25 budget, local assemblers successfully petitioned for a 15 percent RD on imported used cars exceeding 1,300cc.

 Nevertheless, this RD failed to address their concerns, as it excludes small vehicles, which are imported in significant quantities.

 The minister promised to address these issues through consultations with the Ministry of Industries & Production, the Ministry of Finance, and the Federal Board of Revenue (FBR).

 He committed to providing full support to promote local production of auto parts and mobile phones, stressing the priority of maintaining exports as their primary objective.