Vietnam is exporting cell phones worth US $ 60 billion annually to the US
Islamabad: In recent times Bangladesh has started exporting cell phones to the US. In this way he has stood in the ranks of Vietnam, India and Indonesia. Vietnam is exporting $ 60 billion worth of cell phones annually. India's mobile phone exports have reached $ 3 billion annually and it plans to expand it to $ 110 billion by 2025.
Manufacturing facilities or units are now moving out of China, which has led to other countries in the region becoming exporters of mobile phones. Manpower in Pakistan is one third cheaper than China and we are the seventh largest mobile phone market in the world. Last year 28.2 million phones were imported to Pakistan. In addition, 12 million cell phone sets were assembled in the country.
The Pakistan Telecommunication Authority has issued 30 licenses for the assembling and manufacturing of cell phones. The first thing to include in the ranks of mobile phone exporting countries to Pakistan is the government's aggressive mobile phone manufacturing and export policy. Secondly, there should be a difference between the import of fully manufactured units (CBU) and the taxation of semi-knocked down parts (SKDs).
Third, every investor, especially a foreign investor, wants a proper taxation regime. And the fourth factor is tax exemption. Special attention is being paid to the above factors in Pakistan's neighboring countries. Bangladesh is providing 10% subsidy on IT services and hardware exports. Export rebate rates in China and Vietnam are even higher. Therefore, export rebate of mobile phone in Pakistan should be at least equal to Bangladesh.
In addition, these countries offer manufacturers and exporters many other concessions, such as 5-year standardized tax and income tax exemption. According to Pakistan Bureau of Statistics, half a billion dollars worth of mobile phones were imported in July to November 2019. That is, annual imports are expected to be up to $ 1.2 billion. If local manufacturers are encouraged, this import bill will not only significantly reduce but also increase exports.