Apple iPhones New Tax Updates in Pakistan After Budget 2024–25

The federal government of Pakistan has proposed new tax rates on mobile phones, including Apple iPhones, in the budget for the fiscal year 2024–25. If approved by the parliament, these changes will take effect from July 1, 2024, leading to a significant increase in the prices of Apple iPhones in the local market.

Key Highlights of the Proposed Tax Rates:

1. 25% Ad Valorem Tax on High-End Smartphones:

• Imported smartphones priced above $500, including Apple iPhones, will be subject to a 25% ad valorem tax.
• This category includes popular models like iPhone 11, iPhone 13, iPhone 14, iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max.

1. Standard 18% Sales Tax on Other Phones:

• Smartphones priced below $500 will incur a standard 18% sales tax.
• Locally manufactured and supplied smartphones will also face an 18% tax rate.

Impact on Apple iPhone Prices:

Given that Apple does not have an official presence in Pakistan and its devices are imported, the new 25% tax rate on high-end smartphones is expected to cause a substantial increase in the prices of Apple iPhones. Consumers should anticipate higher costs for the latest iPhone models starting July 1, 2024.

Detailed Price Implications:

• iPhone 11: Already a popular choice, the price of this model will see a notable increase.
• iPhone 13: As a high-demand model, expect a significant price hike.
• iPhone 14: The latest in the market, this model’s price will surge, impacting early adopters.
• iPhone 15 Series: Including iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max, these models will experience a steep rise in prices, making them considerably more expensive.

The proposed tax changes are part of the Finance Bill 2024 aimed at increasing revenue from imported luxury items. While this move may help boost government revenues, it will also make high-end smartphones, particularly Apple iPhones, more expensive for consumers in Pakistan. Local smartphone manufacturers and suppliers will also feel the impact of the 18% tax rate, though not as drastically as the importers of high-end devices.