The National Assembly Standing Committee on Finance recommended a reduction in taxes on mobile phones during its meeting on Thursday. Lawmakers examined the duties and taxation structure applied to both imported and locally assembled devices.
Tax officials led by Federal Board of Revenue Chairman Rashid Mahmood Langrial and representatives from the Tax Policy Office briefed the panel.
Imported mobile phones priced above 500 US dollars face a total tax burden of around 76,000 Pakistani rupees, or an overall rate of 54%.
Phones valued between 700 and 750 dollars carry an effective tax rate of about 55%. Locally manufactured or assembled handsets, by comparison, are taxed at roughly 25%.
An 18% general sales tax applies across mobile phones, supplemented by concessional income tax and a withholding tax of approximately 11,500 rupees on higher-end models.
Officials stated that the existing 18% sales tax and withholding tax components offer no immediate scope for reduction.
Committee Chairman Sayed Naveed Qamar highlighted the role of modern technology in driving economic improvement. He said that when sales tax is already being applied there is no justification for additional income tax on mobile phones. Qamar called for a clear and transparent mobile phone taxation policy to feature in the next federal budget.
The move follows sustained pressure from lawmakers who have described the current levies as unaffordable for ordinary consumers and counterproductive to Pakistan’s digital inclusion goals. High taxes have particularly affected imported devices, which dominate the market outside local assembly lines.
The recommendation aligns with earlier instructions from the same committee in December 2025.
At that time the panel directed the Federal Board of Revenue and Pakistan Telecommunication Authority to produce a full report on tax rates, policy options, economic impact, and international comparisons by March 2026.
Officials had then noted that mobile phones were being treated as luxury items despite their growing importance for everyday connectivity.
Potential relief on the PTA tax and related duties now sits with the upcoming budget process. Any changes would directly lower device prices for millions of users and support wider access to smartphones across the country.
