To promote local manufacturing and assembly of mobile phone handsets the Economic Coordination Committee (ECC) has approved the mobile device manufacturing policy for Pakistan. The meeting of ECC was chaired by Adviser to Prime Minister on Finance and Revenue, Dr Hafeez Shaikh.
According to the policy parts of mobile phone handsets, would be used for the entire range of mobile phone handsets produced in the country instead of limited to a particular model.
ECC also approved removal of regulatory duty for the CKDSKD manufacturing by the Pakistan Telecommunication Authority (PTA) approved manufactures under input output Co-Efficient Organization (IOCO) approved import authorization.
Fixed income tax on CKDSKD manufacturing of mobile devices has also been removed up to US$ 350 category and increase in fixed income tax on US$ 351-500 US$ category by Rs2,000 and US$ 500 by Rs6,300 on CKDSKD manufacturing only and removal of fixed sales tax on CKDSKD manufacturing of mobile devices.
Now PTA would allow activation of handsets manufacturing in the country under import authorization of inputs by the IOCO in the CKSSKD kit (8517.1211) and not under HS Code 8517.7000. This would eliminate mis-declaration in parts category at the import stage.