Tax Relief Under Consideration for Low-Cost Phones
Federal Board of Revenue Chairman Rashid Mahmood Langrial has said that taxes on imported mobile phones worth up to $200 may be reduced.
He made the statement during a meeting of the National Assembly Standing Committee on Finance and Revenue.
Langrial told the committee that the proposal is currently under consideration. The move could provide relief to consumers who buy low-cost imported smartphones.
The possible reduction may mainly benefit users purchasing budget and entry-level devices.
Imported mobile phones have become an important source of tax revenue for the government. However, high duties have also increased the cost of smartphones for ordinary consumers.
Imported Phones Generate Rs37 Billion in Revenue
According to the FBR chairman, imported mobile phones generate around Rs37 billion in annual tax revenue.
He said Apple devices alone contribute nearly Rs21 billion to the total collection.
The briefing showed that tax rates on imported mobile phones remain high across different price categories.
Phones priced between $101 and $200 are currently subject to a 40 percent tax.
Devices worth $201 to $350 are taxed at 38 percent.
Phones in the $351 to $500 category face a 40 percent tax, while devices costing more than $500 are taxed at 41 percent.
The effective average tax rate across all imported mobile phone categories stands at 39.6 percent.
Budget Phone Users Could Benefit
FBR officials said the tax payable on imported phones varies according to the value of the handset.
Depending on the device category, the payable tax ranges from Rs1,500 to Rs141,500 per phone.
Officials also informed the committee that nearly 44 percent of imported phones fall within the $31 to $100 category.
The data shows that a large number of consumers depend on affordable imported phones.
A reduction in taxes on phones worth up to $200 could make smartphones more accessible for students, workers, and low-income users.
However, any final decision will depend on government approval and revenue considerations.
