The National Assembly Standing Committee on Finance was informed that taxes on imported mobile phones in Pakistan have surged to as high as 54%, significantly increasing the cost of devices for consumers.
The meeting, chaired by Syed Naveed Qamar, included a detailed briefing by officials from the Tax Policy Office on the current taxation structure for mobile phones. Officials revealed that, in addition to the high tax rate, a withholding tax of Rs 11,500 is also being charged on expensive smartphones.
They further stated that the cumulative tax burden on imported phones now exceeds half of their original price, raising concerns about affordability and access to modern technology.
While briefing the committee, officials stated that mobile phones are currently subject to an 18% General Sales Tax (GST), along with a concessional income tax. They further explained that a withholding tax of Rs. 11,500 is being charged on expensive mobile phones.
In comparison, the tax rate on locally manufactured phones has been reduced to 25%, whereas for imported phones it rises to as much as 54% of the device’s value. Officials also noted that a total tax of approximately Rs. 76,000 is imposed on a phone priced at $500.
Chairman Syed Naveed Qamar criticised the dual taxation system, stating that if a sales tax is already applied, there should be no need for an additional income tax. He emphasised, “Modern technology should be allowed to enter the country, as economic growth depends on public access to the latest technology.”
He also directed officials to simplify the current tax structure, describing it as overly complex, and called for a clear and transparent mobile phone tax policy to be presented in the upcoming budget, so that it is easier for both consumers and manufacturers.
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