The government may finally ease the tax burden on mobile phone users. A key parliamentary body has recommended reducing PTA-related taxes on smartphones. The proposal came during a meeting of the National Assembly Standing Committee on Finance.
Officials confirmed that the matter will be reviewed in the upcoming federal budget for 2026-27. The move could bring significant relief to consumers facing high import duties on mobile devices.
The session included a detailed briefing from Federal Board of Revenue Chairman Rashid Mahmood Langrial and tax policy officials.
High Mobile Taxes Under Scrutiny
Lawmakers expressed concern over the heavy tax structure on imported smartphones. Currently, devices priced above $500 face a tax burden of around Rs. 76,000. This translates to nearly 54 percent of the phone’s value.
For premium devices priced between $700 and $750, the tax rate rises further to about 55 percent. These high duties have made smartphones less affordable for many consumers.
Officials explained that multiple taxes are applied. These include an 18 percent General Sales Tax (GST), income tax, and withholding tax. Expensive phones also carry an additional withholding tax of around Rs. 11,500.
However, authorities stated there is little room to reduce GST or withholding tax at this stage. This limits the scope of immediate relief.
Local Manufacturing Gets Preferential Treatment
The committee was informed that locally assembled phones are taxed at a lower rate. These devices face an average tax rate of around 25 percent. This policy aims to promote domestic manufacturing and reduce reliance on imports.
Lawmakers acknowledged the importance of supporting local industry. However, they also stressed the need to balance affordability for consumers.
The current tax gap between imported and local devices remains significant. This has influenced buying trends across the market.
Call for Transparent and Balanced Tax Policy
Committee Chairman Sayed Naveed Qamar emphasized the importance of modern technology. He stated that access to smartphones supports economic growth and digital development.
He questioned the logic of multiple taxes on the same product. According to him, applying income tax alongside sales tax creates an unnecessary burden. He urged the government to simplify the taxation system.
The committee also called for a clear and transparent policy in the next budget. Lawmakers want to reduce uncertainty and ensure consistency in tax rules.
If approved, the proposed tax reduction could lower smartphone prices. This may boost digital adoption and improve market activity.
The final decision will be made during the federal budget announcement. Consumers and industry stakeholders are closely watching for potential relief.
