ISLAMABAD: Concerns over excessive taxation on smartphones in Pakistan were raised during a National Assembly Standing Committee on Finance meeting on Wednesday. Lawmakers warned that high duties are making smartphones increasingly unaffordable for the public.
PPP MNA Qasim Gillani highlighted the issue, stating, “There’s too much tax on smartphones; they already cost too much and are beyond the common man’s reach.” He further noted that consumers sometimes face additional taxes if their phones are stolen.
FBR Chairman Rashid Langrial responded, acknowledging concerns over the valuation of imported smartphones. He assured the committee that if the Federal Board of Revenue (FBR) valuation exceeds the prevailing market rate, adjustments would be made. Tax authorities emphasized that duties are calculated based on the phone’s price rather than the model.
The FBR is expected to submit a comprehensive report on the smartphone tax mechanism by March. Officials revealed that mobile phones generated Rs82 billion in revenue for the last fiscal year.
Committee Chairman Syed Naveed Qamar stressed the need to reduce smartphone taxes to ease the burden on consumers. Another member suggested including mobile phones in the Eighth Schedule to help lower costs.
PTA Chairman Major-General Hafeezur Rehman clarified that only 6% of high-end smartphones are imported, while the majority are assembled locally. He also mentioned that the issuance of the 5G license is expected between February and March next year.
