A meeting of the National Assembly Standing Committee on Finance was held under the chairmanship of Syed Naveed Qamar to discuss taxes and regulatory duties on mobile phones in Pakistan. During the meeting, committee members reviewed the current tax system on smartphones and discussed ways to make mobile phones more affordable for the public.
Officials from the Federal Board of Revenue (FBR) informed the committee that regulatory duty is mainly charged on expensive smartphones. However, members of the committee expressed concern that the government had previously promised to reduce taxes on mobile phones, but no significant relief has been provided so far. They questioned why these promised tax reductions were not included in the Budget 2026-27.
Committee members Qasim Gilani and Ali Qasim Gilani strongly criticized the high taxes on mobile phones. They said that smartphones are no longer a luxury item but an important necessity for education, business, communication, and access to digital services. According to them, reducing mobile phone taxes is essential for the success of Pakistan’s Digital Pakistan vision, which aims to increase internet access and digital connectivity across the country.
During the briefing, the FBR presented details of the current tax structure on imported mobile phones. Phones worth up to $30 are subject to a 25 percent tax. Devices priced between $31 and $100 face a 36 percent tax, while phones valued between $101 and $200 are taxed at 40 percent. Smartphones costing between $201 and $350 carry a 38 percent tax, those priced between $351 and $500 are taxed at 40 percent, and phones worth more than $500 face a 41 percent tax.
Officials also revealed that the actual tax amount paid by consumers ranges from around Rs. 1,500 for low-cost phones to as much as Rs. 141,500 for premium smartphones. They further stated that nearly 44 percent of imported mobile phones fall within the $31 to $100 price category, making this one of the most commonly imported segments in Pakistan.
The committee was also informed that millions of non-PTA-approved mobile phones are currently being used in the country. This creates challenges for authorities because such devices often avoid taxes and make it harder for the government to collect revenue and enforce regulations.
To help consumers manage the financial burden of mobile taxes, committee members proposed introducing an installment-based payment system. Under this proposal, users would be able to pay mobile phone taxes in smaller installments instead of paying the full amount at once. Chairman Syed Naveed Qamar directed the FBR and the Pakistan Telecommunication Authority (PTA) to work together and develop a practical plan for implementing this system.
After detailed discussions, the committee recommended completely abolishing the regulatory duty on smartphones. Members believe that removing this duty would lower the cost of mobile phones, make smartphones more accessible to ordinary citizens, simplify the tax system, and support Pakistan’s digital transformation goals.
If approved by the government, this proposal could make smartphones significantly cheaper in the future and encourage greater digital inclusion across Pakistan
