NA Committee Proposes Installment Plan For Mobile Taxes

ISLAMABAD: (Web Desk) – Members of the National Assembly’s Standing Committee on Finance have proposed allowing mobile phone taxes and registration charges to be paid in installments, aiming to make smartphone ownership more affordable for consumers.

During a meeting chaired by Syed Naveed Qamar, committee members held a detailed discussion on the taxation structure applied to locally assembled and imported mobile phones.

Briefing the committee, Rashid Langrial, Chairman of the Federal Board of Revenue, outlined the current tax rates on mobile devices. He stated that phones valued at up to $30 are subject to a 25% tax, while those priced between $31 and $100 face a 36% levy. Devices costing $101 to $200 attract a 40% tax, while rates range from 38% to 41% for higher-priced smartphones.

Langrial explained that the tax burden rises with the value of the device, with per-unit taxes ranging from approximately Rs1,500 to Rs141,500 depending on the handset category.

The FBR chairman further informed lawmakers that around 44% of imported mobile phones fall within the $31 to $100 price bracket, making it the most common category among imported devices.

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Committee members argued that consumers should be allowed to pay mobile phone taxes in installments, noting that installment-based payment options are widely available globally for various products and services.

Following the discussion, Naveed Qamar directed officials from the FBR and the Pakistan Telecommunication Authority to jointly prepare a proposal on installment-based tax payments and present it before the committee.

During the meeting, Langrial also suggested that taxes on mobile phones priced up to $200 could potentially be reduced. Committee member Hina Rabbani Khar questioned whether the existing taxation policy was primarily aimed at increasing revenue collection.

In response, the FBR chairman stated that mobile phone taxation remains a significant source of revenue, revealing that the government collects approximately Rs37 billion annually from taxes on imported handsets.