The government of Pakistan has indicated it may reduce taxes and duties on imported mobile phones worth up to $200 (about PKR 55,600).
Lawmakers pushed for this relief for consumers during a meeting of the National Assembly Standing Committee on Finance.
The issue came up during a briefing by the Federal Board of Revenue (FBR) about the tax system for imported and locally made mobile phones. The meeting was chaired by committee head and MNA Syed Naveed Qamar.
FBR Chairman Rashid Mahmood Langrial told lawmakers that the government could think about lowering taxes on cheaper mobile phones, and said the financial impact would be small, around PKR 1 billion.
The proposal was discussed as several lawmakers criticized the budget, saying it did not give enough relief to the public.
Committee member Javed Hanif Khan said the budget failed to support consumers properly, while MNA Bilal Azhar Kayani questioned why changes were made in the Finance Bill if they did not help the public.
Former foreign minister and committee member Hina Rabbani Khar also questioned the tax system, asking whether it was meant to raise revenue or protect certain market interests. She said mobile phone taxes should not be so high.
In response, Langrial said taxes on imported mobile phones are an important source of government income and are included in yearly revenue targets. He said the government collects about PKR 37 billion each year from mobile phone imports, including around PKR 21 billion from Apple devices alone.
Finance Secretary Imdadullah Bosal said that if taxes on low-priced phones are reduced, the government will need to find other sources of income to cover the loss.
According to the FBR briefing, phones priced up to $30 are taxed at an effective rate of 25%. Phones costing $31 to $100 are taxed at 36%, while those priced $101 to $200 face a 40% tax. Devices in the $201 to $350 range are taxed at 38%.
Smartphones priced between $351 and $500 are taxed at 40%, and phones above $500 face a 41% tax rate. Officials said the tax amount per phone ranges from about PKR 1,500 to PKR 141,500 depending on the price, and the average tax rate is 39.6%.
Lawmakers also raised concerns about the increasing number of non-PTA-approved phones in the market. They suggested allowing people to pay mobile taxes in installments.
Committee members asked the FBR and Pakistan Telecommunication Authority (PTA) to work together on a plan that would allow installment payments, saying such systems are common in other countries even for low-cost items.
The committee chairman instructed the FBR and PTA to prepare a practical proposal for future meetings.
