ISLAMABAD – The Senate Standing Committee on Cabinet Secretariat has recommended reducing taxes on mobile phones, including iPhones and iPads, amid concerns that high taxes are affecting businesses and the technology sector.
The meeting was chaired by committee chairman Senator Rana Mahmood Ul Hassan, where the existing taxation structure on mobile phones was reviewed.
The committee recommended completely removing taxes on iPads and urged that duties on iPhones and other mobile phones be brought to a more realistic level.
Senator Abdul Qadir said mobile phones have become essential for businesses and various aspects of daily life, arguing that excessive taxation could cause more harm than benefit. Senator Sadia Abbasi also highlighted the impact of high phone taxes on IT-related businesses.
The committee chairman said, citing GSMA, that Pakistan could face difficulties with 5G adoption because of the existing tax structure.
What the PTA Says
PTA Chairman Hafeez-ur-Rehman briefed the committee, explaining that taxation on mobile phones does not fall under the regulator’s mandate.
He said the Federal Board of Revenue (FBR) collects the taxes, while PTA blocks devices on which the applicable taxes have not been paid.
Officials said locally manufactured phones are not subject to these taxes, which are collected on imported devices. They also noted that phones currently produced locally are 4G, while Pakistan imported 12,000 5G phones this year.
FBR’s Take
An FBR representative told the committee that Parliament has the authority to determine taxation on mobile phones.
