GST removal on locally-assembled units: Samsung, OPPO may start manufacturing cellphones

[Patriot forever]

GST removal on locally-assembled units: Samsung, OPPO may start manufacturing cellphones
Mushtaq Ghumman 11 Mar 2021

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ISLAMABAD: M/s Samsung and M/s OPPO are likely to start local assembly in Pakistan soon after removal of sales tax on locally assembled mobiles from above $ 200 category.
Mobile Device Manufacturing Policy 2020 was approved by the ECC in May 2020. The decision was subsequently ratified by the Cabinet on June 2, 2020.
The mobile device manufacturing policy provides sufficient advantage to the local manufacturing of mobile phones especially below $ 200 category in comparison with imports in completely built condition. M/s VIVO, M/s Airlink Communications, M/s Inovi Telecom are amongst the new investors in local assembly of mobile phones that have already started their trial production in February 2021.
The combined capacity of these three companies is more than 1 million mobile handsets per month whereas M/s Transsion Tecno, a Karachi based company assembling three famous brands including Itel, Infinix and Tecno , has increased local assembly from 150,000 units to 650,000 units per month owing to increase in demand soon after the policy was launched. In addition to the new entrants in mobile assembly, few experienced companies like G-Five and Q Mobile was already operating in the market, while M/s Samsung and OPPO are poised to enter local assembly in Pakistan market and are probably waiting for the implementation of approved recommendation of policy to remove sales tax on locally assembled mobiles from above $ 200 category. By introduction of new players and capacity enhancement by existing companies, Pakistan will soon be able to meet major portion of local demand, which was around 3.6 million per month in CY 2020.
The local manufacturing companies are moving rapidly from 2-G non android market to the 4-G smart phones as the local manufacturing has ensured availability of mobile handsets at competitive prices to customers.
Engineering Development Board (EDB), a technical arm of Ministry of Industries and Production (MoIP) was made the secretariat of Mobile Policy.
The policy has provisioned a 3 % export rebate for the local companies to enter into export market. From the initial success of the policy and increased demand in local and international market, the local assemblers are optimistic about export of locally assembled mobile phones.
The mobile phone manufacturing industry is expected to become larger than the automotive industry of Pakistan in terms of turnover in a few years and employment is expected to grow manifold. To further boost the electronics sector, work has already started on preparing appropriate framework for local assembly of tablets, allied equipment and mobile accessories in near future in line with its vision to improve the entire eco system, and make this the fastest growing sector in terms of employment and exports in the near future.

......

We are moving towards industrialization. The same is the scenario in tire industry, local production is on an upward trend after clamp down on smuggling.

 

[Qutb-ud-din Aybak]

wasting money on phones.
Poor country with less savings.

 

[blueazure]

wasting money on phones.
Poor country with less savings.

bhai atleast we would have a sophisticated manufacturing workforce that knows something other than textile and cement !

these cell fone manufacturing plants employ thosands . kuch na hone se to behtar hai !

 

[Oracle]

its good initiative


new jobs
no import of phones , but parts only ( saving $$)
Cheap phones, even though this idiot PM made life living hell in Pakistan

 

[Sheikh Rauf]

any one knows how much Government sales Taxes will be removed, I hope they keep the quality.

 

[Kabira]

This again is thanks to Nawaz DRIBS system.

 

[Pandora]

Will provide employment to unemployed graduates such initiative should be pursued on urgent basis. Employment is a major concern nowadays.

 

[War Thunder]

wasting money on phones.
Poor country with less savings.

Wating time on the Internet. Citizen of a poor country with too much to be done instead of sitting free.

 

[Enigma SIG]

wasting money on phones.
Poor country with less savings.

You sir are not aware of the industry that surrounds these phones

Videogames are a bigger industry than movies and North American sports combined, thanks to the pandemic - MarketWatch

"Global videogame revenue is expected to surge 20% to $179.7 billion in 2020, according to IDC data, making the videogame industry a bigger moneymaker than the global movie and North American sports industries combined. The global film industry reached $100 billion in revenue for the first time in 2019, according to the Motion Picture Association, while PwC estimated North American sports would bring in more than $75 billion in 2020."

 

[313ghazi]

This is exactly the sort of thing we need to be doing. Create conditions where people can invest in Pakistan and create jobs.

wasting money on phones.
Poor country with less savings.

You are mistaken. Smartphones have given people access to banking, information, e-governance and many other resources. In houses where people could not afford PC's people are learning to use the internet on phones. Kids who would have struggled with english are learning bits and pieces for social media. This will create further economic activity and opportunity.

its good initiative


new jobs
no import of phones , but parts only ( saving $$)
Cheap phones, even though this idiot PM made life living hell in Pakistan

If you have a moment, could you please share your experiences and thoughts on this thread;

If you think the PTI government is doing badly, how can it improve?

I was reading another thread earlier on today and I noticed a boring pattern we are all to familiar with on this forum. Some people defending the government, other people criticizing it - but nobody listening or exchanging ideas. It's a wider societal problem, not just limited to Pakistan. It...

defence.pk

 

[Patriot forever]

This again is thanks to Nawaz DRIBS system.

Behind DRIBS system was security agencies.
It's not just the system, the policy to stop smuggling and incentivize manufacturing is the main objective.

The benefit and cost analysis of assembling phone in Pakistan during PLMN tenure, why would someone invest when they can easily import the phone and sell, given the subsidized rupee and bare minimum duties?

When imports are made expensive, local substitution takes place. When one company moves their assembly to take benefit of incentives given in the form of taxes and duties, it's competitors are forced to do the same otherwise they will loose the market share.

It is not just the mobile industry, be it auto industry, construction industry why is master tiles etc expanding? ( There is a gap in the market today, where purely imports bracket is being moved gradually to upper class, middle class and upper middle class are moving towards local produced goods. This is promoting our local industries to offer better products to cater their taste and adapt to new trends.
Had it not been for the fiscal constrains and shackles of IMF, with the right incentives our local industries/manufacturing would have gained immensely)

 

[Splurgenxs]

What is the rare earth reserve estimates for Pakistan?

 

[Skywalker]

wasting money on phones.
Poor country with less savings.

Stop living in Qutb-ud-din Aybak era

any one knows how much Government sales Taxes will be removed, I hope they keep the quality.

You are pretending like you were having lavish life during last regimes, height of ignorance.

 

[Thorough Pro]

Why remove the GST instead of giving them a limited tax break?

GST removal on locally-assembled units: Samsung, OPPO may start manufacturing cellphones
Mushtaq Ghumman 11 Mar 2021
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ISLAMABAD: M/s Samsung and M/s OPPO are likely to start local assembly in Pakistan soon after removal of sales tax on locally assembled mobiles from above $ 200 category.
Mobile Device Manufacturing Policy 2020 was approved by the ECC in May 2020. The decision was subsequently ratified by the Cabinet on June 2, 2020.
The mobile device manufacturing policy provides sufficient advantage to the local manufacturing of mobile phones especially below $ 200 category in comparison with imports in completely built condition. M/s VIVO, M/s Airlink Communications, M/s Inovi Telecom are amongst the new investors in local assembly of mobile phones that have already started their trial production in February 2021.
The combined capacity of these three companies is more than 1 million mobile handsets per month whereas M/s Transsion Tecno, a Karachi based company assembling three famous brands including Itel, Infinix and Tecno , has increased local assembly from 150,000 units to 650,000 units per month owing to increase in demand soon after the policy was launched. In addition to the new entrants in mobile assembly, few experienced companies like G-Five and Q Mobile was already operating in the market, while M/s Samsung and OPPO are poised to enter local assembly in Pakistan market and are probably waiting for the implementation of approved recommendation of policy to remove sales tax on locally assembled mobiles from above $ 200 category. By introduction of new players and capacity enhancement by existing companies, Pakistan will soon be able to meet major portion of local demand, which was around 3.6 million per month in CY 2020.
The local manufacturing companies are moving rapidly from 2-G non android market to the 4-G smart phones as the local manufacturing has ensured availability of mobile handsets at competitive prices to customers.
Engineering Development Board (EDB), a technical arm of Ministry of Industries and Production (MoIP) was made the secretariat of Mobile Policy.
The policy has provisioned a 3 % export rebate for the local companies to enter into export market. From the initial success of the policy and increased demand in local and international market, the local assemblers are optimistic about export of locally assembled mobile phones.
The mobile phone manufacturing industry is expected to become larger than the automotive industry of Pakistan in terms of turnover in a few years and employment is expected to grow manifold. To further boost the electronics sector, work has already started on preparing appropriate framework for local assembly of tablets, allied equipment and mobile accessories in near future in line with its vision to improve the entire eco system, and make this the fastest growing sector in terms of employment and exports in the near future.

......

We are moving towards industrialization. The same is the scenario in tire industry, local production is on an upward trend after clamp down on smuggling.

 

[Bilal9]

GST removal on locally-assembled units: Samsung, OPPO may start manufacturing cellphones
Mushtaq Ghumman 11 Mar 2021
Facebook
Twitter
Whatsapp
Comments

ISLAMABAD: M/s Samsung and M/s OPPO are likely to start local assembly in Pakistan soon after removal of sales tax on locally assembled mobiles from above $ 200 category.
Mobile Device Manufacturing Policy 2020 was approved by the ECC in May 2020. The decision was subsequently ratified by the Cabinet on June 2, 2020.
The mobile device manufacturing policy provides sufficient advantage to the local manufacturing of mobile phones especially below $ 200 category in comparison with imports in completely built condition. M/s VIVO, M/s Airlink Communications, M/s Inovi Telecom are amongst the new investors in local assembly of mobile phones that have already started their trial production in February 2021.
The combined capacity of these three companies is more than 1 million mobile handsets per month whereas M/s Transsion Tecno, a Karachi based company assembling three famous brands including Itel, Infinix and Tecno , has increased local assembly from 150,000 units to 650,000 units per month owing to increase in demand soon after the policy was launched. In addition to the new entrants in mobile assembly, few experienced companies like G-Five and Q Mobile was already operating in the market, while M/s Samsung and OPPO are poised to enter local assembly in Pakistan market and are probably waiting for the implementation of approved recommendation of policy to remove sales tax on locally assembled mobiles from above $ 200 category. By introduction of new players and capacity enhancement by existing companies, Pakistan will soon be able to meet major portion of local demand, which was around 3.6 million per month in CY 2020.
The local manufacturing companies are moving rapidly from 2-G non android market to the 4-G smart phones as the local manufacturing has ensured availability of mobile handsets at competitive prices to customers.
Engineering Development Board (EDB), a technical arm of Ministry of Industries and Production (MoIP) was made the secretariat of Mobile Policy.
The policy has provisioned a 3 % export rebate for the local companies to enter into export market. From the initial success of the policy and increased demand in local and international market, the local assemblers are optimistic about export of locally assembled mobile phones.
The mobile phone manufacturing industry is expected to become larger than the automotive industry of Pakistan in terms of turnover in a few years and employment is expected to grow manifold. To further boost the electronics sector, work has already started on preparing appropriate framework for local assembly of tablets, allied equipment and mobile accessories in near future in line with its vision to improve the entire eco system, and make this the fastest growing sector in terms of employment and exports in the near future.

......

We are moving towards industrialization. The same is the scenario in tire industry, local production is on an upward trend after clamp down on smuggling.

Congrats to Pakistani brothers on becoming self-sufficient in most important sector of technology. Hope backward parts integration will follow.