ISLAMABAD – Flagship smartphone prices in Pakistan are skyrocketing in wake of plethora of taxes and duties that have made premium devices increasingly unaffordable. With levies pushing costs to extreme levels, the issue has now caught the attention of lawmakers, as it was recently taken up by the National Assembly Standing Committee on Finance for review and possible relief.
Pakistan’s National Assembly Standing Committee on Finance sounded the alarm over sky-high mobile phone taxes, urging immediate relief for consumers burdened by steep import duties and levies. The issue took center stage as lawmakers scrutinized the complex taxation system applied to both imported and locally assembled devices.
Imported smartphones priced above $500 are currently slapped with tex of Rs76,000, amounting half of the device’s value. Even more striking, phones in the $700 to $750 bracket face taxes climbing up to 55 percent, making premium devices increasingly out of reach for ordinary consumers.
On the other hand, locally assembled or manufactured phones enjoy significantly lighter taxation at approximately 25 percent, highlighting a sharp disparity in policy aimed at boosting domestic production.
The committee was further told that an 18 percent General Sales Tax (GST) remains firmly in place, alongside a concessional income tax and a hefty withholding tax of about Rs. 11,500 on high-end devices. Despite growing criticism, FBR officials maintained there is currently no room to reduce either the GST or withholding tax.
Committee Chairman Sayed Naveed Qamar did not hold back, stressing that access to modern technology is vital for economic progress. He openly questioned the logic of imposing income tax on top of existing sales tax, calling it unjustified and counterproductive.
How much PTA tax are Pakistanis paying on mobile phones? Full details here
