 |
| (Photo Source: VCG) |
The cabinet on Tuesday approved Pakistan's first mobile device manufacturing policy, which will be in line with a summary from the Ministry of Industry and Production.
This policy has been formulated by the Engineering Development Board (EDB) in the technical economic arm of the Ministry of Industry and Production (MOIP) through extensive consultation with relevant public and private sector stakeholders.
The Economic Coordination Committee (ECC) in its last meeting on May 21, 2020, had approved the mobile device manufacturing policy, which was further ratified at the said Cabinet meeting.
Minister for Industry and Production Hamad Azhar congratulated his ministry and thanked the Ministry of Commerce, Ministry of IT and Telecom, Pakistan Telecommunication Authority, Ministry of Planning, Federal Board of Revenue (FBR) and ECC. Acknowledged support.
The market has a capacity of over 40 million handsets, which have become a practical possibility, especially after the successful launch of the Device Identification, Registration and Blocking System (DIRBS) which has made mobile phone smuggling a imposibility
 |
| (Photo Source: AndroidPIT) |
The policy aims to encourage local collectors to employ local engineers, skilled and semi-skilled educated youth. Pakistan is ready to take advantage of competitive human resources to attract investment from around the world. The purpose of this policy is to phase out the localization/individualization of mobile phone parts.
The rules of this policy are as follows:
1: The abolition of regulatory duty for PTA approved CKD / SKD manufacturing is prepared under the Input / Output Cooperative Organization (IOCO) Import Permit.
2: Abolition of fixed income tax on CKD / SKD manufacturing of mobile devices in the 350 350 category.
3: Fixed income tax on CKD / SKD manufacturing alone increased by Rs.2000 in US 35 351.500 category and Rs.6300 in US 500 500.
4: Abolition of fixed sales tax on CKD / SKD manufacturing of mobile devices.
5: PTA does not allow country-made handsets to be activated by IKCO under the CKD / SKD kit (8517.1211) nor under the HS code 8517.7000 ie parts. This will eliminate the misrepresentation in the prism category at the import stage. After the payment of all duties and taxes fixed by the Government from time to time, the functioning of CBUs imported through the notified routes will continue till further modification.
6: In the category up to 30 30, the words "excluding smartphones" will be entered for CBU imports under 8517.1219 to avoid misrepresentation.
7: Local manufacturers should be given 3% R&D allowance for exports of G mobile phones.
8: Locally assembled/manufactured phones should be exempted from 4% holding tax on domestic sales.
9: Until the expiration of the policy, the government will be bound to maintain the tariff difference between CBU and CKD / SKD.
10: Local industry to ensure localization of parts and components in accordance with the roadmap included in the draft policy.
11: EDB will act as the Secretariat of Mobile Phone Manufacturing Policy and ensure the development of related parts, components, and equipment.
A total of 16 local companies are making mobile devices in the country, most of which are making feature phones, ie 2G. Companies are now turning to making smartphones as technology moves towards 4G / 5G.
Local manufacturers have expressed satisfaction with the approval of the mobile phone policy and expressed the view that investment in the sector will begin.
The policy ensures that local manufacture of associated parts and components such as Bluetooth, hands-free, mobile accessories, etc. will attract intelligent interventions in line with international best practices.
0 Comments