The National Assembly Standing Committee on Finance and Revenue has stressed that high taxation is hindering Pakistan’s Digital Pakistan vision by limiting access to the digital economy.
It has urged the government to rationalise taxes, especially on entry-level and mid-range smartphones, to improve digital inclusion, expand the formal market, boost compliance, and support long-term economic growth.
The committee met under the chairmanship of Syed Naveed Qamar. The committee concluded its intensive series of meetings held to undertake a comprehensive clause-by-clause examination of the Finance Bill, 2026.
Following extensive deliberations, the Committee approved several significant legislative refinements aimed at strengthening transparency, protecting taxpayers’ rights, improving accountability, and enhancing the effective implementation of tax laws.
Over the course of its meetings, the Committee received comprehensive briefings from the Federal Board of Revenue (FBR), the Ministry of Finance, the National Tariff Commission (NTC), the Ministry of Industries, the Ministry of Commerce, and other relevant stakeholders on a broad range of fiscal and taxation proposals.
These included measures relating to income tax, sales tax, customs, federal excise, tariff reforms, petroleum levy, digital taxation, banking data sharing, tax administration, compliance mechanisms, and sector-specific fiscal incentives. Members thoroughly examined each proposal, carefully assessing its economic implications, implementation feasibility, impact on taxpayers’ rights, transparency, and the potential consequences for consumers, businesses, exporters, and Pakistan’s overall investment climate.
The Committee conducted an extensive review of the proposed taxation framework for mobile phones, where Hon. Members strongly opposed the imposition of additional taxes on selected smartphone brands and raised concerns about the current tax regime on imported devices. Members noted that smartphones have become essential tools of digital infrastructure, supporting education, financial inclusion, e-commerce, freelancing, e-governance, and employment opportunities.
The Committee further highlighted that excessive taxation is hindering Pakistan’s Digital Pakistan vision by limiting access to the digital economy. It recommended that the Government rationalise taxes, particularly on entry-level and mid-range smartphones, to enhance digital inclusion, broaden the formal market, improve compliance, and encourage sustainable economic growth.
Separately, the Committee stressed that the sustainable development of the aviation sector depends on policies that ensure fair competition, build investor confidence, and secure the long-term viability of all operators, rather than providing selective advantages to any specific segment.
On the other hand, in a statement on the social networking platform X, PPP leader and Member of the National Assembly Syed Qasim Gilani confirmed this important development.
He wrote in his message: “Alhamdulillah, the regulatory duty imposed on smartphones has been abolished. This is a very positive step toward making connectivity and modern technology more affordable and accessible for the people of Pakistan.”
It should be noted that Qasim Gilani has been raising his voice in Parliament and in the Standing Committee on Finance against the heavy taxes and PTA fees imposed on smartphones for the past several years, and has also run a consistent campaign in this regard. He believes that in the present era, smartphones are not a luxury but a basic necessity for employment, education, youth, students, and freelancers.
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