NA Standing Committee Approves Proposal to End Regulatory Duty on Smartphones

A meeting of the National Assembly Standing Committee on Finance was held under the chairmanship of Syed Naveed Qamar, where a comprehensive review of taxation and regulatory duty on smartphones was conducted. The session brought together concerns over affordability, tax structure complexity, and previously made government assurances regarding tax relief.

Officials from the Federal Board of Revenue (FBR) briefed the committee that regulatory duty on smartphones currently applies primarily to high-end devices. However, members strongly questioned the delay in implementing promised tax reductions, particularly those expected to be addressed in the Budget 2026–27. Lawmakers highlighted that despite repeated assurances, meaningful relief has not yet been passed on to consumers.

NA Standing Committee Approves Proposal to End Regulatory Duty on Smartphones

During the discussion, Qasim Gilani and Ali Qasim Gilani criticized the continued imposition of taxes on mobile phones, arguing that affordability is central to expanding digital access in the country. They emphasized that reducing mobile taxation is essential for advancing the “Digital Pakistan” agenda and pointed out that parliamentary assurances had not been translated into policy action.

The committee also received a detailed breakdown of the current tax structure on imported mobile phones. According to the FBR briefing, devices valued up to $30 are taxed at 25%, $31–$100 at 36%, $101–$200 at 40%, $201–$350 at 38%, $351–$500 at 40%, and phones above $500 at 41%. Officials further stated that the per-unit tax burden ranges from PKR 1,500 to as high as PKR 141,500, depending on category and value.

See Also: Pakistani Freelancers Cross $1 Billion Milestone, Drive 25% of IT Export Earnings

It was also revealed that approximately 44% of imported mobile phones fall within the lower tax bracket of $31–$100, while millions of non-PTA-approved phones are currently circulating in the market. This situation, according to officials, complicates enforcement and revenue collection.

In response to these challenges, committee members proposed introducing an installment-based payment system for mobile phone taxes to ease financial pressure on consumers. The Chairman instructed the FBR to coordinate with the Pakistan Telecommunication Authority (PTA) to develop a workable installment plan.

After extensive deliberation, the committee recommended abolishing the regulatory duty on smartphones and suggested that the proposal be incorporated into upcoming policy and budgetary decisions. The move reflects a broader push toward making mobile devices more affordable while simplifying the country’s tax structure and supporting digital inclusion goals.