- Premiums on latest models reaching Rs150,000.
- Imported phones taxed under existing regime.
- Report on the issue due by March before NA.
The Federal Board of Revenue (FBR) has said that taxes on expensive, imported mobile phones impact only a small segment of consumers, noting that premiums on new high-end models stand at around Rs150,000.
“This is only a 5%-customer issue,” FBR Chairman Rashid Langrial told the Senate Standing Committee on Finance, which was discussing a petition filed by the Federation of Chambers of Commerce and Industry in Islamabad.
Langrial said that 95% of mobile phones in the country are now manufactured locally, adding that only imported devices face the current tax structure.
He noted that consumers already paying large premiums for luxury models should have no difficulty paying due taxes. “The problem is entirely with high-end phones. If someone can pay a Rs150,000 premium, why can’t they pay tax?” he remarked.
The FBR chief reiterated that taxes apply to imported phones, not local ones, and that concerns raised by industry stakeholders would be addressed in detail.
He assured the committee that the revenue authority will submit its report on the matter to the National Assembly by March, and the same findings will also be shared with the committee.
During the National Assembly’s Standing Committee on Finance a day earlier, PPP MNA Qasim Gillani said that there’s too much tax on smartphones as they already cost too much and are beyond the common man’s reach.
The MNA added that the people were even forced to pay tax again if their phones were stolen.
FBR Chairman Langrial had told the committee that prices of several major brands had fallen, but acknowledged concerns over valuation. “If the FBR rate is higher than the market rate, it will be reduced,” he assured.
Tax officials added that duties were applied to the phone’s price, not the model. Tax officials said mobile phones contributed Rs82 billion in revenue last fiscal year.
