The National Assembly's Standing Committee on Finance and Revenue on Tuesday directed the Federal Board of Revenue (FBR) and Pakistan Telecommunication Authority (PTA) to prepare a detailed report on mobile phone taxes with instructions to include policy options, economic impact, international comparisons, and proposed revisions.

 

 

Chairing the meeting, MNA Naveed Qamar voiced his concerns about increasing mobile phone taxes, arguing that these devices have been misclassified as luxury goods. “I am not pleased with the current designation of mobile phones as luxury items,” he remarked. Mr. Qamar directed both the FBR and the Tax Policy Office to reassess the existing tax rates applied to the import of mobile phones under personal baggage and registration programs. He indicated that the report should be finalized by March 2026, enabling the committee to review the situation ahead of the upcoming budget.

 

 

MNA Qasim Gilani pointed towards the impact on consumers, emphasizing that taxes are levied again if phones are lost or stolen. “Individuals are utilizing smartphones for content creation, video sharing, and e-commerce,” he noted, mentioning that the taxes for older iPhone 6 models can soar to Rs35,000, whereas imports of iPhone 12 can incur taxes up to Rs100,000.

 

 

MNA Sharmila Faruqi highlighted the expense associated with newer models. “The latest iPhone retails for Rs350,000, with an additional tax burden of Rs190,000,” she stated. Officials from the FBR clarified that taxes are based on the prices of devices rather than specific models.

 

 

MNA Mirza Ikhtiar Baig emphasized the necessity for the government to establish a clear taxation system and dismissed the idea that smartphones are exclusively for affluent individuals.

 

 

The PTA Chairman informed the committee that only six percent of premium phones are imported, while the majority are produced domestically. He also mentioned that 5G licenses are anticipated to be granted between February and March of the following year.

 

 

FBR Chairman Rashid Mahmood Langrial noted that, in general, smartphone prices and taxes have declined, with the exception of certain major brands. He added that the mobile phone sector generated Rs82 billion in tax revenue during the last fiscal year.

 

 

The committee proposed placing smartphones under the Eighth Schedule to provide relief for consumers. Tax officials explained that the Ninth Schedule currently governs telecom items, whereas the Eighth Schedule offers concessions. They also highlighted that except for Apple, most smartphones are now produced locally.