Govt charging over half the price of imported phones in taxes, NA panel told

The National Assembly’s Standing Committee on Finance was informed on Thursday that taxes on imported mobile phones in Pakistan have climbed to as high as 54 per cent of their value.

The committee, headed by Syed Naveed Qamar, was briefed by tax policy officials on the current taxation structure applied to mobile devices. During the meeting, officials revealed that the cumulative tax burden on imported phones now exceeds half of their original price.

According to the briefing, mobile phones are currently subject to an 18 per cent General Sales Tax (GST) along with concessional income tax. In addition, high-end devices are charged a withholding tax of Rs11,500.

Officials further noted a stark disparity between locally manufactured and imported phones. While locally assembled devices face a reduced tax rate of around 25 per cent, imported phones are taxed at rates reaching up to 54 per cent of their value.

The committee was told that a mobile phone worth $500 attracts approximately Rs76,000 in total taxes.

Chairman Syed Naveed Qamar criticised the dual taxation regime, questioning the need for additional income tax when sales tax is already in place. He stressed the importance of facilitating access to modern technology, stating that economic growth depends on broader public access to advanced devices.

He directed officials to simplify the existing tax structure, terming it overly complex, and called for a clear and transparent mobile taxation policy to be introduced in the upcoming budget to ease difficulties for both consumers and industry stakeholders.

In a post on X, PPP MNA Kasim Gilani said, "Good news for mobile phone users. The NA Standing Committee on Finance has unanimously recommended reducing PTA taxes after a joint study by FBR and the Finance Ministry. A meaningful step toward affordability and digital inclusion. A win for us."

Tweet by Kasim Gilani