The National Assembly Standing Committee on Finance held an important meeting under the chairmanship of Syed Naveed Qamar to discuss taxes and regulatory duties imposed on mobile phones in Pakistan. The meeting focused on concerns about the high cost of smartphones, complicated tax rules, and the government’s previous promises to reduce taxes on mobile devices.
During the meeting, officials from the Federal Board of Revenue (FBR) informed the committee that regulatory duty is mainly charged on higher-end smartphones. However, committee members questioned why the government has not yet implemented the tax relief that had been promised several times, especially during discussions related to the Budget 2026-27.
Several lawmakers expressed disappointment that despite repeated assurances from authorities, mobile phone users have not received any significant reduction in taxes. They argued that these delays are making smartphones more expensive and limiting access to digital technology for ordinary Pakistanis.
Members of the committee, including Qasim Gilani and Ali Qasim Gilani, strongly criticized the current taxation system on mobile phones. They stated that affordable smartphones are essential for education, online business, freelancing, digital banking, and communication. According to them, reducing taxes on mobile devices is necessary for the success of Pakistan’s Digital Pakistan vision.
The committee was also given detailed information about the taxes currently charged on imported mobile phones. According to the FBR, different tax rates apply based on the value of the phone.
Mobile phones worth up to $30 are taxed at 25 percent.
Phones priced between $31 and $100 face a tax rate of 36 percent.
Devices valued between $101 and $200 are taxed at 40 percent.
Phones costing between $201 and $350 face a 38 percent tax.
Devices worth between $351 and $500 are taxed at 40 percent.
Smartphones valued above $500 are taxed at 41 percent.
Officials further explained that the actual tax amount paid by consumers can range from around PKR 1,500 for low-cost phones to as much as PKR 141,500 for expensive flagship devices.
The committee was also informed that nearly 44 percent of imported mobile phones fall into the $31 to $100 price category. This means a large number of Pakistani consumers are paying relatively high taxes on budget and mid-range smartphones.
Another issue discussed during the meeting was the growing number of non-PTA-approved mobile phones being used across the country. Officials said millions of such devices are currently active in the market, making it more difficult for authorities to enforce regulations and collect taxes properly.
To help consumers manage the cost of mobile phone registration and taxes, committee members suggested introducing an installment-based payment system. Under this proposal, users would be able to pay mobile phone taxes in smaller monthly payments instead of paying the full amount at once.
Chairman Syed Naveed Qamar directed the FBR to work with the Pakistan Telecommunication Authority (PTA) to explore a practical plan for implementing such an installment system.
After detailed discussions, the committee recommended completely removing the regulatory duty on smartphones. Members believe this step would make mobile phones more affordable for the public, encourage greater digital inclusion, increase smartphone adoption, and support Pakistan’s growing digital economy.
The recommendation will now be considered as part of future government policy discussions and budget decisions. If approved, it could provide significant relief to consumers and help make smartphones more accessible for millions of Pakistanis.
The committee’s recommendation reflects a broader effort to simplify Pakistan’s mobile taxation system, reduce the financial burden on consumers, and support the country’s digital transformation goals.
