Lawmakers expressed strong concerns over rising smartphone taxes during a recent meeting of the National Assembly’s finance committee. Many members argued that high duties were making smartphones unaffordable for the public.
PPP MNA Qasim Gillani said taxes had reached unreasonable levels. He noted that phones already cost too much and were out of reach for many people. Moreover, he said consumers even faced additional tax payments if their devices were stolen.
FBR Agrees to Review Valuation Concerns
Officials from the Federal Board of Revenue responded to these concerns. They stated that prices for several major brands had recently decreased. However, they accepted that valuation discrepancies existed.
The FBR Chairman said any valuation rate higher than the market rate would be revised. He also clarified that taxes were calculated on the price of the device, not on the model itself.
Furthermore, the FBR committed to presenting a detailed report on the smartphone tax framework by March. Officials said the mobile phone sector contributed Rs82 billion in revenue last fiscal year.
Committee Pushes for Tax Relief Measures
Committee Chairman Syed Naveed Qamar urged authorities to work seriously on reducing smartphone taxes. He emphasized that rising duties were affecting affordability for millions.
Another committee member proposed placing smartphones in the Eighth Schedule. This move could potentially lower consumer tax burdens and improve accessibility.
PTA Shares Import and Local Assembly Data
The Pakistan Telecommunication Authority also presented data during the session. The PTA Chairman stated that only 6% of expensive smartphones were imported. The remaining devices were assembled locally.
He added that the long-awaited 5G licence would likely be issued between February and March next year. This development could reshape the mobile sector while increasing demand for advanced devices.
Smartphone Affordability Remains a Major Concern
The discussion highlighted a major challenge: rising taxes are pushing smartphones further out of reach. However, authorities have now promised to review valuation methods and consider relief measures.
As the market waits for the FBR’s report, many hope that future policy changes will reduce costs and improve access to modern devices.
