Owing to boom in the Smartphone market and attract foreign brands, the government had reduced withholding tax on mobile phones from 14 percent. Moreover, customs duty on Smartphone sets will be cut to Rs 650 per set.

Government has reduced taxes on certain kind of smart phones, the budget document has claimed.

According to details, one category - for which import duty was Rs 1,000 - has been reduced to Rs 650.

It must be mentioned that there were three categories of handsets as following: Feature phone - Import Duty: Rs 300, Low end smartphone - Import Duty: Rs. 650 (Previously it was Rs. 1,000) and High end smartphone - Import Duty: Rs. 1,500.

With this tax reduction mid-range and low-end phones will see a price reduction, as most of the smartphone companies in Pakistan adjust their prices according to taxes and import duties.

Official of Pakistan Telecommunication Authority (PTA) said that the step has been taken to increase the uptake of smart phones in the country.

He said with the inclusion of 3G and 4G technology in Pakistan a few years ago, this sector had witnessed a surprising boom.