As per media reports the government imposed an 18% General Sales Tax (GST) on the sale of new mobile phones. However, consumers didn’t initially realize how heavily this would impact their wallets.
As mobile phones have become a basic necessity; the impact of the recent budget by the PML-N government is gradually becoming apparent. While the budget was initially presented with a maze of figures and claims, the true story emerges only when the departments begin implementing its measures.
Lahore’s largest mobile phone markets are witnessing frequent arguments between customers and shopkeepers, as the 18% GST came into effect this week. Muhammad Farooq, a resident of Lahore, came to Hafeez Center to buy a new mobile phone but left without purchasing it.
Speaking to Urdu News, he said, “I wanted to buy a mobile phone. I had checked its price earlier and saved up; it was priced at 103,000 rupees. Today, when I came to buy it, they said it now costs 72,000 rupees, up from 63,000. That’s a 9,000 rupee increase. I had struggled to gather the earlier amount, so now I’m leaving without buying it. I’ll look for a used phone instead.”
Muhammad Farooq is not alone in his frustration over the rising prices of mobile phones this week. Everyone going to the market to buy a mobile phone faces the same issue.
READ MORE: Samsung announces Galaxy Ring, Z Fold 6, Z Flip 6, Galaxy Watch Ultra and more
Sidra Ishaq, also from Lahore, found that the price of the mobile phone she intended to buy had increased by 36,000 rupees. She said, “I wanted to buy an Android phone priced at 205,000 rupees, but now they’re saying it’s 243,000 rupees. This is outrageous. The shopkeepers are blaming the new tax. They’re telling me to ask the government.”
The new taxes imposed in the budget have not only affected the mobile phone market but also led to strikes by associations like the Flour Mills Association. Additionally, there is discontent among traders regarding direct retail taxes. The coming days will reveal how easy it will be for the government to collect these new taxes introduced in the budget.