- Premiums for the latest models reach Rs 150,000.
- Imported phones are subject to tax under the existing regime.
- Report on the topic scheduled for March before NA.
The Federal Board of Revenue (FBR) has said that taxes on expensive imported mobile phones affect only a small segment of consumers, pointing out that premiums for new high-end models are around Rs 150,000.
“This is only a problem of 5% of the customers,” 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 95% of the country’s mobile phones are now manufactured locally, adding that only imported devices face the current tax structure.
He noted that consumers who already pay large premiums for luxury models should not have difficulty paying the corresponding taxes. “The problem is entirely with high-end phones. If someone can pay a premium of Rs 150,000, why can’t they pay taxes?” he commented.
The FBR chief reiterated that the taxes are levied on imported phones, not local ones, and that the concerns raised by industry stakeholders would be addressed in detail.
He assured the committee that the tax authority will present its report on the matter to the National Assembly in March, and that the same findings will also be shared with the committee.
During the National Assembly Standing Committee on Finance a day earlier, PPP MNA Qasim Gillani said there are too many taxes on smartphones because they already cost too much and are out of reach of the common man.
The MNA added that people were even forced to pay taxes 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 said.
Tax officials added that the tariffs applied to the price of the phone, not the model. Tax officials said mobile phones contributed Rs 82 billion to revenue last fiscal year.
