The National Assembly Standing Committee on Finance expressed on Thursday concern over the high taxes on mobile phones in the country, and directed the Tax Policy Office (TPO) in the Ministry of Finance to submit a detailed report on the existing taxation structure for both imported and locally manufactured devices.
“The Committee was apprised of the existing taxation regime applicable to mobile phones, including the rates of income tax and sales tax imposed on imported as well as locally manufactured devices. The briefing covered the tax structure for CBU and CKD/SKD imports based on the assessed value of mobile phones, along with the relevant provisions of the Income Tax Ordinance, 2001, and the Sales Tax Act, 1990,” said a post by Committees of NA on X.
According to the press release, the Committee recommended that the prevailing taxation structure be reviewed to ensure equity, consumer affordability, and the encouragement of local manufacturing, while also examining the adequacy of the existing exemptions available under the Income Tax Ordinance, 2001, and the Baggage Rules, 2006.
The committee, which was chaired by MNA Naveed Qamar, observed that income tax on mobile phones was being treated as sales tax and issued orders for its review. He directed the Tax Policy Office to review the matter and furnish a comprehensive written note on the rationale, revenue impact, and policy objectives of the existing tax rates on imported and locally manufactured mobile phones, particularly in respect of CBU and CKD/SKD categories.
The meeting was attended by Rana Iradat Sharif Khan, Syed Sami Ul Hassan Gilani, Mr. Ali Zahid, Dr. Nafisa Shah, Mirza Ikhtiar Baig, Mr. Arshad Abdullah Vohra, Mr. Muhammad Jawed Hanif Khan, and Ms. Shahida Begum, MNAs. The meeting was also attended by Hon. Bilal Azhar Kayani, Federal Minister of State for Finance, Mr. Qaiser Ahmed Sheikh, Federal Minister for Maritime Affairs, The Advisor to Hon. Speaker for Legislation, Parliamentary Practices and Trainings, the Finance Secretary, Chairman FBR, and officers from the Finance Division, Revenue Division, and Board of Investment, along with their senior officers.
