By Commerce Reporter
ISLAMABAD: The National Assembly’s Standing Committee on Finance has called for a substantial reduction in taxes on imported smartphones, warning that the current rates put them out of reach for the common consumer.
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The committee instructed the Ministry of Finance and the Federal Board of Revenue (FBR) to compile a detailed report on reducing smartphone taxes, with a final submission due by mid-March 2026.
During discussions, the Chairman of the Pakistan Telecommunication Authority (PTA) pointed out that 98 percent of phones produced locally do not support 5G, while only 2 percent do. The 5G spectrum is expected to be launched in February 2026.
The committee noted that PTA-related taxes on imported phones can amount to as much as 60 percent of the device’s value. Chairman Syed Naveed Qamar emphasized that smartphones are no longer luxury items but essential tools for daily life, and prices should reflect affordability.
Committee member Sharmeela Farooqi highlighted cases where a smartphone costing PKR 370,000 carried taxes of PKR 190,000, making them inaccessible to ordinary buyers. FBR Chairman Rashid Langrial added that average smartphone prices have decreased and the Finance Ministry can coordinate with the IT Ministry to review tax schedules.
In the previous fiscal year, FBR collected PKR 8.2 billion in taxes from smartphones. The committee concluded that lowering these taxes would make devices more affordable and accessible to the public.
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