Islamabad – The National Assembly Standing Committee on Finance has strongly urged the government to review and reduce the heavy taxes imposed on mobile phones, calling for reforms that could make devices more affordable for ordinary citizens. The committee’s members criticised the Federal Board of Revenue (FBR) and Pakistan Telecommunication Authority (PTA) for maintaining what they described as “excessive” levies on essential communication tools.
During the heated session, committee chairman Syed Naveed Qamar highlighted that mobile phones, once seen as luxury items, have now become essential for daily life, work, and education. He questioned whether owning a modest smartphone should be treated as a luxury, stressing that access to digital communication is now a basic necessity.
Members of the committee voiced their concerns over steep tax rates on high-end smartphones, which can reach up to 55‑60%. This means that a device priced under Rs 400,000 could end up costing over Rs 550,000 once taxes are added, effectively pricing many users out of the market and restricting access to modern communication technology.
FBR officials acknowledged the significant revenue generated from mobile phone taxation, reporting that last fiscal year around Rs 82 billion was collected from phone taxes, with Rs 18 billion coming specifically from smartphones. PTA representatives added that nearly 94% of mobile phones in Pakistan are locally assembled, highlighting that imported high-end phones are primarily affected by these taxes.
In response to public concerns, the committee has requested a detailed report outlining the structure and economic impact of mobile phone taxation. The report is expected by mid-March 2026, after which the committee will revisit the issue ahead of the next budget cycle. Several members, including Hina Rabbani Khar and Ali Qasim Gilani, have already recommended substantial reductions in these levies to ease the financial burden on consumers.
Experts warn that excessively high taxes encourage the use of unregistered “non-PTA” phones, creating a grey market that undermines regulatory control and long-term government revenue. With growing demand for smartphones among Pakistan’s youth and professionals, balancing revenue generation with affordability has become a pressing issue for policymakers.
The coming months will be critical as the government decides whether to ease the burden on consumers, promote digital inclusion, and support the country’s growing technology sector, or maintain high levies in pursuit of short-term revenue — a decision with far-reaching implications for Pakistan’s digital economy.
This story has been reported by PakTribune. All rights reserved.