The Senate Standing Committee on Cabinet Secretariat has reviewed taxes imposed on imported mobile phones and recommended an immediate reduction in the levies to ease the burden on consumers.
The matter was discussed at a meeting of the committee chaired by Senator Rana Mahmood-ul-Hassan, where members examined the pricing mechanism for imported mobile phones and the procedure used to determine applicable taxes.
The committee directed customs authorities to develop an effective mechanism for determining taxes on imported mobile phones. It also sought detailed reports from the Federal Board of Revenue (FBR) and the Tariff Commission regarding the taxation structure for mobile phones.
The committee subsequently recommended that taxes on imported mobile phones be reduced without delay.
FBR officials told the committee that the authority to impose or abolish taxes rests with Parliament. Meanwhile, Pakistan Telecommunication Authority (PTA) officials informed the meeting that 35 companies are currently manufacturing smartphones in Pakistan.
Senator Abdul Qadir said the government also needed to consider whether taxes should be imposed on mobile phones at all. Senator Saadia Abbasi criticised the government for creating difficulties for citizens through taxation and said the focus should be on facilitating businesses rather than exploiting consumers.
Senator Dilawar Khan said the country’s policies lacked a long-term vision.
Meanwhile, Cabinet Secretary Kamran Ali opposed the imposition of sales tax on mobile phones, arguing that digital payments were bringing about a transformation in the country’s financial system.
Read also: Mobile Users Paying More? Here’s What PTA Says
