The National Assembly’s Standing Committee on Finance, led by Syed Naveed Qamar, held a meeting on Tuesday where members called for lower PTA taxes on mobile phones. Naveed Qamar criticized the Federal Board of Revenue (FBR) for imposing heavy taxes on phones after already increasing vehicle taxes, asking if owning a car or mobile phone had become a crime in Pakistan. Lawmakers stressed that mobile phones are no longer luxuries but essential for daily life.
FBR officials admitted that taxes on high-end smartphones can go up to 55 percent, including devices competing with iPhones and other premium brands. Last year, the FBR collected Rs. 82 billion in mobile phone taxes, Rs. 18 billion of which came from smartphones. Committee member Sharmila Faruqi shared that she paid Rs. 370,000 for a phone but had to add Rs. 190,000 in PTA taxes, making the total cost over Rs. 550,000, with some phones taxed up to 60 percent.
The FBR Chairman said a full report on mobile phone taxation would be provided, while the PTA Chairman noted that 94 percent of phones in Pakistan are assembled locally and only six percent of expensive imports are taxed heavily. He added that Pakistan is preparing for 5G after a spectrum auction expected by February.
Committee members requested a detailed report by mid-March and urged the government to review tax rates before the next budget. Lawmakers highlighted issues such as high taxes on older phones, extra taxes if phones are stolen, and the negative impact on freelancers. They argued that lower taxes could increase device registration and tax filers, while FBR promised to review valuations that exceed market prices. Naveed Qamar emphasized that smartphones are essential tools, and high taxes cannot be justified by IMF conditions.
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