Mobile phone prices go up due to increased taxes

LAHORE: Mobile phone prices all over Pakistan have gone up in the wake of additional taxes announced by the government.

According to details, mobile phone manufacturers have increased their prices by up to Rs10,000 after the government announced it was implementing an 18% tax increase on digital devices in Pakistan.

The additional taxes have now led to a surge in the prices of both feature and smartphones with the Mobile Phone Manufacturing Association claiming the hike was a result of the taxes, which could hurt the mobile phone industry.

An anonymous representative of the association said customers would consider twice or thrice before purchasing a new phone due to the massive price hike and all of this could adversely affect the smartphone industry, the production of which had shown a 55% year-over-year increase in May.

The industry has also seen a significant shift towards local manufacturing, with 95% of mobile phones now being locally produced.