ISLAMABAAD – The federal government is likely to reduce taxes on mobile phones in upcoming budget for next fiscal year 2026-27, providing a relief to users across Pakistan.
The proposal was discussed during a meeting of the National Assembly’s Standing Committee on Finance held a day earlier.
Officials from the Federal Board of Revenue (FBR), including Chairman Rashid Mahmood Langrial, and representatives from the Tax Policy Office briefed the committee.
Authorities assured members that the issue of reducing taxes on mobile phones would be considered in the upcoming budget.
The meeting was informed that imported mobile phones priced above $500 currently face taxes of up to Rs76,000, amounting to around 54 percent of their value. For devices priced between $700 and $750, the total tax burden rises to approximately 55 percent.
Officials stated that imported mobile phones are subject to around 54 percent tax, while locally manufactured or assembled devices are taxed at a lower rate of about 25 percent.
In addition, a general sales tax (GST) of 18 percent is applied, along with a withholding tax of nearly Rs11,500 and concessional income tax on higher-end devices.
FBR officials noted that there is currently little room to reduce the 18 percent GST or the withholding tax.
Committee Chairman Syed Naveed Qamar emphasized the need to promote modern technology in the country, stating that it plays a key role in economic growth.
He questioned the justification for additional income tax on mobile phones when sales tax is already being collected.
He called for a clear and transparent policy on mobile phone taxation in the next federal budget to address existing uncertainty in the system.
