ISLAMABAD: A parliamentary committee on Tuesday directed the Federal Board of Revenue (FBR) and Pakistan Telecommunication Authority (PTA) to prepare a report on tax rates for mobile phones, covering policy options, economic impact, international comparisons, and proposed revisions.

The directive came from the National Assembly Standing Committee on Finance and Revenue, chaired by MNA Naveed Qamar, who expressed displeasure over rising taxes on mobile phones, noting that these institutions have wrongly classified mobile phones as luxury items.

The chairman urged both the FBR and Tax Policy Office to review current tax rates on mobile phone imports under the personal baggage and registration schemes. Mr Qamar said the report should be prepared by March 2026, enabling the committee to examine the matter comprehensively ahead of the next budget.

MNA Qasim Gilani criticised the heavy taxes on mobile phones, noting that consumers are forced to pay taxes again if their phones are lost or stolen. He highlighted that smartphones are already very expensive, citing a tax of Rs35,000 on older iPhone 6 models and Rs100,000 on iPhone 12 imports. “People are using smartphones for content creation, video sharing, and e-commerce,” he said, stressing their role in livelihoods.

FBR chairman claims smartphone taxes, prices have declined overall

MNA Sharmila Faruqi pointed out that the latest iPhone costs Rs350,000, with an additional tax burden of Rs190,000. FBR officials clarified that levies are applied on the price of devices rather than on specific models.

MNA Mirza Ikhtiar Baig said that a clear mechanism for taxation is essential, rejecting the notion that smartphones are exclusively for the wealthy.

The PTA chairman informed the committee that only six per cent of high-end phones are imported, while the majority are locally manufactured. He also announced that 5G licences are expected to be issued by February-March next year.

FBR Chairman Rashid Mahmood Langrial said that smartphone prices and taxes have declined overall, except for a few major brands. He reported that Rs82 billion in tax revenue was generated from mobile phones in the last fiscal year.

The committee suggested placing smartphones under the Eighth Schedule to provide relief to consumers. Tax officials explained that the Ninth Schedule currently applies to telecom, while the Eighth Schedule offers concessions. They added that, apart from Apple, most smartphones are now manufactured domestically.

Published in Dawn, December 10th, 2025