The Federal Board of Revenue (FBR) has clarified that taxes on expensive, imported mobile phones affect only a small segment of consumers.
FBR Chairman Rashid Langrial told the Senate Standing Committee on Finance that premiums on high-end models currently stand at around Rs150,000, emphasizing that this is a “5%-customer issue.”
Langrial noted that 95% of mobile phones in Pakistan are now manufactured locally, with only imported devices subject to the current tax structure.
He added that consumers paying large premiums for luxury models should have no difficulty covering the associated taxes. “The problem is entirely with high-end phones. If someone can pay a Rs150,000 premium, why can’t they pay tax?” he remarked.
The FBR chief assured the committee that taxes apply exclusively to imported phones, not locally manufactured ones. He also confirmed that concerns raised by industry stakeholders would be addressed thoroughly.
The revenue authority will submit its report on the matter to the National Assembly by March, with the same findings shared with the committee.
During the National Assembly Standing Committee on Finance session, PPP MNA Qasim Gillani raised concerns that high smartphone taxes make devices unaffordable for the average consumer, and that people sometimes face double taxation when phones are stolen.
Langrial acknowledged the valuation concerns and confirmed that if the FBR rate exceeds the market rate, it will be adjusted. Tax officials clarified that duties are applied to the phone’s price rather than the model itself.
Mobile phones contributed Rs82 billion in revenue to the national exchequer last fiscal year, highlighting the sector’s significance for government revenue while affecting only a small segment of high-end consumers.
