Smartphone Tax Concerns Rise as Lawmakers Push for Relief
Growing smartphone tax concerns sparked a lively debate in the National Assembly’s Standing Committee on Finance. Lawmakers argued that rising duties made essential devices harder to afford. As a result, many people felt left out of the digital economy.
Several members stressed the need for urgent reforms. They noted that heavy taxation increased the financial burden on consumers. In addition, many users struggled to replace stolen devices because they had to pay tax again on the new purchase.
Tax Debate
PPP MNA Qasim Gillani voiced serious frustration during the meeting. He said smartphone prices were already high, and extra duties pushed them further beyond reach. However, he emphasized that fair pricing could help more people stay connected.
FBR Chairman Rashid Langrial responded to these concerns. He said the prices of major brands had dropped in recent months. Therefore, the FBR was ready to adjust valuation rates if they exceeded current market levels. He also explained that duties applied to the phone’s price instead of the model.
Officials informed the committee that mobile phones generated Rs82 billion in revenue last fiscal year. However, they agreed to revisit the system. The FBR will present a detailed report on the mechanism by March.
Committee Chairman Syed Naveed Qamar supported reducing taxes to relieve consumers. Another member proposed placing smartphones under the Eighth Schedule. This shift could simplify the tax structure and lower costs.
Local Market and 5G
PTA Chairman Major General Hafeezur Rehman added helpful insight about the market. He said only 6% of high end devices came from imports. Most phones were assembled locally, which showed growing industry capacity. In addition, he highlighted that the upcoming 5G licence would roll out between February and March next year.
He said affordable smartphones could boost digital access across the country. However, rising duties risked slowing progress.
Lawmakers agreed that accessible technology strengthened economic growth. Therefore, they urged the authorities to create a balanced tax framework. This approach could support both revenue goals and public needs.
The committee concluded that easing taxes would benefit millions of users. As a result, the government now faces pressure to act quickly.
