The federal government is planning a new policy to help people buy smartphones through easy monthly installments.
Prime Minister Shehbaz Sharif has directed officials to prepare the policy to make mobile phones more affordable for the public.
Federal Minister for IT and Telecommunication Shaza Fatima Khawaja shared the details during a meeting of the Senate Standing Committee on Cabinet Secretariat.
The committee discussed mobile phone taxes, import rules and other issues affecting smartphone prices in Pakistan.
Officials from the Federal Board of Revenue (FBR) also attended the meeting.
Government plans easier smartphone purchases
Shaza Fatima told the committee that 93 per cent of mobile phones used in Pakistan are manufactured locally.
She also said that locally manufactured phones are not subject to the taxes discussed during the meeting.
The minister explained that the prime minister wants a policy that allows consumers to purchase smartphones without paying the full price upfront.
However, the installment scheme has not been launched yet.
Reportedly, mobile phone companies are seeking certain assurances before joining the proposed program.
The government has not announced the eligibility requirements, monthly payment amounts or launch date.
The committee also discussed the availability of 5G smartphones in Pakistan.
Shaza Fatima said there were no major problems with importing 5G devices.
She added that FBR taxes were not affecting the country’s progress toward 5G technology.
The minister also noted that imported phones make up a relatively small share of the market.
Moreover, the meeting also focused on reducing taxes on older smartphones.
Shaza Fatima explained that the Tax Policy Office has the authority to increase or reduce taxes on mobile phones and other products.
She suggested inviting its officials to brief the committee on possible changes.
FBR officials explained that a phone’s model and storage capacity are important factors in calculating taxes.
However, the current system used by the Pakistan Telecommunication Authority (PTA) cannot identify specific phone models, creating difficulties in tax assessment.
Officials have been given one month to review the matter and provide additional information.
Imported mobile phones in installments
Previously, paying sales tax on imported mobile phones, including Apple’s latest models, became easy for Pakistanis.
Federal Board of Revenue (FBR) allowed individuals to pay sales tax on imported mobile phones in easy monthly installments through the Pakistan Telecommunication Authority Device Identification Registration and Blocking System.
The tax will be divided into equal monthly installments based on the number of months remaining in the financial year.
