Senate Panel Calls For Immediate Cut in Taxes on Imported Mobile Phones

A Senate committee has recommended an immediate reduction in taxes imposed on imported mobile phones while directing customs authorities to develop a mechanism for determining their valuation and taxation.

The recommendation was made during a meeting of the Senate Standing Committee on Cabinet Secretariat, chaired by Senator Rana Mahmood-ul-Hassan, where the committee discussed the pricing and taxation of imported mobile phones.

Officials of the Pakistan Telecommunication Authority (PTA) told the committee that customs authorities would need to establish a proper mechanism for determining the prices of imported mobile phones.

The committee subsequently directed customs officials to devise a mechanism for the taxation of imported mobile phones and recommended an immediate reduction in the taxes imposed on them.

Senator Abdul Qadir questioned the need for taxing mobile phones altogether, saying the government would have to consider whether taxes should be imposed on mobile phones in the first place.

Officials of the Federal Board of Revenue (FBR), however, told the committee that the authority to impose or abolish taxes rests with Parliament.

The committee sought reports from the FBR and the National Tariff Commission on the existing taxation structure applicable to mobile phones.

During the meeting, Senator Dilawar Khan criticized the country’s policymaking, saying that Pakistan’s policies were not being formulated with a long-term perspective.

PTA officials informed the committee that 35 companies are currently manufacturing smartphones in Pakistan, highlighting the growing presence of local mobile phone production.

Senator Sadia Abbasi called for greater facilitation of businesses and consumers, arguing that the government should focus on facilitating economic activity rather than exploiting businesses and citizens through excessive taxation.

“Instead of exploitation, businesses should be facilitated,” she said, adding that government revenue measures were creating difficulties for the public.

The meeting also touched upon the country’s growing digital payments ecosystem. Cabinet Secretary Kamran Ali Afzal said digital payments were bringing about a transformation in Pakistan’s payments system.

The cabinet secretary also opposed the imposition of sales tax on mobile phones.

The committee’s recommendations are expected to put the existing taxation and valuation mechanism for imported mobile phones under renewed scrutiny, with the FBR and National Tariff Commission now required to submit reports on the matter.

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PTA Supports Lower Mobile Taxes to Improve Smartphone Affordability