Samsung, a dominant player in the Pakistani smartphone market, continues to face challenges in the country as escalating taxes put its flagship models out of the financial reach of many consumers.
The Samsung Galaxy S21 series, once revered for its top-notch hardware and software enhancements, is now significantly more expensive, thanks to the various taxes imposed by the government.
Mounting Taxation
The government has increased taxes on mobile phones significantly, including customs duties, sales tax, and withholding tax. The amount of tax imposed varies based on factors like the smartphone's value and type, with a notable distinction between those using a passport and those using an ID card.
Samsung Galaxy S21 Prices Soar
The latest pricing for the Samsung Galaxy S21 series in Pakistan is staggering, and for many, unaffordable. As of October 2023, the Samsung Galaxy S21 is priced at Rs 176,499, well above the range accessible to the salaried class population.
Taxation by model
The tax rates for the Samsung Galaxy S21 series in Pakistan differ depending on whether a passport or an ID card is used for the purchase. Here's a breakdown of the taxes:
Taxation with passport:
- Samsung Galaxy S21: Rs 67,337
- Samsung Galaxy S21 Plus: Rs 79,089
- Samsung Galaxy S21 Ultra: Rs 96,967
Taxation with ID card:
- Samsung Galaxy S21: Rs 80,131
- Samsung Galaxy S21 Plus: Rs 94,116
- Samsung Galaxy S21 Ultra: Rs 115,390
Impact on consumers
These soaring tax rates are making high-end Samsung smartphones, once within the reach of many, now a luxury only a few can afford. The middle-class population, which has been a significant part of Samsung's consumer base, is now reconsidering their options due to this substantial financial burden.
Industry Experts' Opinions
Experts in the industry suggest that these high taxes are not only affecting Samsung but also the overall smartphone industry in Pakistan. It's expected that this increased financial burden may lead to a slowdown in the smartphone market.
