Business

PTA drafts rules for local mobile manufacturing, seeks comments from stakeholders

Aftab Ahmed

Islamabad: The federal government has expedited efforts to implement Mobile Device Manufacturing Policy – to promote local manufacturing and assembly of mobile handsets in the country as the Pakistan Telecommunication Authority (PTA) seeks feedback from all stakeholders on the draft rules and regulations for local mobile phone manufacturing.

Economic Coordination Committee (ECC) in its meeting held in March this year had approved Mobile Device Manufacturing Policy to promote local manufacturing and assembly of mobile phone handsets.

The ECC had approved removal of Regulatory Duty for CKD/SKD manufacturing by PTA approved manufactures under input/output Co-Efficient Organization (IOCO) approved import authorization. It also removed fixed Income Tax on CKD/SKD manufacturing of mobile devices up to USD 350 category and increase in Fixed Income Tax on USD 351-500 USD category by Rs 2000 and>USD 500 by Rs.6300 on CKD/SKD manufacturing only.

ECC had removed fixed Sales Tax on CKD/SKD manufacturing of mobile devices and allowed PTA activation of handsets manufacturing in the country under import authorization of inputs by IOCO in CKS/SKD kit (8517.1211) and not under HS Code 8517.7000 i.e. parts. It was also stressed that local industry to ensure localization of parts and components as per roadmap included in draft policy.

“To promote local manufacturing and assembly, and to discourage smuggling of mobile handsets, Pakistan Telecommunication Authority has prepared draft Mobile Device Manufacturing Regulations and Authorisation Template in the light of Mobile Device Manufacturing Policy issued by the Government of Pakistan on 2nd June, 2020,” PTA said in official statement.

The telecommunication regulator invited telecom consumers, stakeholders and the public to provide their comments on the draft available at PTA website link by October 5 2020 or in case of no feedback the draft will be considered as final.

“PTA has taken substantial steps to promote local manufacturing of handsets. PTA is envisaging domestic production of low, medium and high-end smartphones and foreign companies will be incentivised to invest in the manufacturing of mobile handsets in Pakistan,” it added.

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