ISLAMABAD: The National Assembly Standing Committee on Finance has raised concerns over the high tax burden on mobile phones and directed the Tax Policy Office to submit a detailed report on the existing taxation structure.
As per reports, the committee, Chaired by Naveed Qamar, observed that income tax on mobile phones is effectively being treated as a sales tax and called for a review of the practice.
The panel also asked for a written note explaining the rationale, revenue impact, and policy objectives behind the current tax regime, while recommending a reduction in overall taxes on mobile devices.
Officials from the Federal Board of Revenue informed the committee that imported mobile phones priced above $500 attract taxes of around Rs76,000, translating into an effective tax rate of approximately 54%. Devices in the $700–$750 range face a slightly higher tax burden of nearly 55%.
The committee was told that imported phones are taxed at around 54% of their value, while locally assembled or manufactured devices are subject to a lower rate of about 25%.
The taxation structure includes an 18% general sales tax, along with income tax and a withholding tax of approximately Rs11,500 on higher-end devices.
FBR officials said there is limited room to reduce GST or withholding tax rates under the current framework.
The committee called for a detailed review of taxation across Completely Built Unit, Completely Knocked Down, and Semi Knocked Down categories, and asked authorities to assess exemptions available under existing laws.
Members said the current tax regime affects affordability and access to technology, and stressed the need to align taxation with broader economic objectives.
Officials also highlighted exemptions for mobile phones imported by visually impaired persons and under personal baggage rules, with ad valorem sales tax rates ranging from 18% to 25% depending on device classification.







