ISLAMABAD: The National Assembly’s Standing Committee on Finance on Wednesday raised alarm over what legislators described as excessively high taxes on smartphones, cautioning that the burden was putting essential digital access beyond the reach of ordinary citizens.
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PPP MNA Qasim Gillani criticized the current tax regime, saying smartphone prices were already “too high” and that citizens were even compelled to pay taxes again if their devices were stolen and replaced. “There’s too much tax on smartphones; they are already beyond the common man’s reach,” he said during the meeting.
Federal Board of Revenue (FBR) Chairman Rashid Langrial responded that prices of several major phone brands had declined recently but acknowledged ongoing complaints about valuation discrepancies. “If the FBR valuation rate is higher than the market rate, it will be reduced,” he assured the committee. Tax authorities clarified that duties are applied based on the device’s value rather than its model.
The FBR is expected to present a detailed report on the smartphone taxation mechanism in March. Officials revealed that mobile phone taxation contributed Rs82 billion to national revenue during the previous fiscal year.
Committee Chairman Syed Naveed Qamar emphasized the need to “reduce taxes on smartphones,” while another member proposed including mobile phones in the Eighth Schedule to bring immediate cost relief to consumers.
Pakistan Telecommunication Authority (PTA) Chairman Major-General Hafeezur Rehman informed the committee that only 6% of high-end smartphones are imported, with the remainder assembled locally. He added that Pakistan’s long-awaited 5G spectrum licence would likely be issued between February and March next year.
