NA body urges urgent review of mobile Phone tax regime

ISLAMABAD, Apr 16 (APP):The National Assembly, Standing Committee on Finance and Revenue on Thursday ordered for urgent review of mobile Phone tax regime and sought  fair taxation and consumer relief. The issued was discussed in the 23rd meeting of the Standing Committee on Finance and Revenue, held here under the Chairmanship of Syed Naveed Qamar, Member National Asssembly. The Chairman committee questioned the existing tax structure and urged submission of …

Naveed Qamar,
ISLAMABAD, Apr 16 (APP):The National Assembly, Standing Committee on Finance and Revenue on Thursday ordered for urgent review of mobile Phone tax regime and sought  fair taxation and consumer relief.
The issued was discussed in the 23rd meeting of the Standing Committee on Finance and Revenue, held here under the Chairmanship of Syed Naveed Qamar, Member National Asssembly.
The Chairman committee questioned the existing tax structure and urged submission of a comprehensive policy note. The committee was briefed on the duties and taxes levied on mobile phones.
The committee was apprised of the existing taxation applicable to mobile phones, including the rates of income tax and sales tax imposed on imported as well as locally manufactured devices. The briefing covered the tax structure for CBU and CKD/SKD imports based on the assessed value of mobile phones, along with the relevant provisions of the Income Tax Ordinance, 2001, and the Sales Tax Act, 1990.
The committee was further informed about the statutory exemptions available for mobile phones imported for blind persons and those brought under personal baggage rules, as well as the applicable sales tax rates ranging from 18 percent to 25 percent ad valorem depending upon the value and classification of the device.
Chairman Syed Naveed Qamar expressed displeasure and observed that income tax was also being treated as sales tax. He directed the Tax Policy Office to review the matter and furnish a comprehensive written note on the rationale, revenue impact, and policy objectives of the existing tax rates on imported and locally manufactured mobile phones, particularly in respect of CBU and CKD/SKD categories.
The committee recommended that the prevailing taxation structure be reviewed to ensure equity, consumer affordability, and the encouragement of local manufacturing, while also examining the adequacy of the existing exemptions available under the Income Tax Ordinance, 2001, and the Baggage Rules, 2006.
The committee considered “The Special Economic Zones (Amendment) Act, 2026” (Government Bill) and unanimously recommended that the Bill may be passed by the National Assembly as amended.
The committee considered “The Parliamentary Budget Office Bill, 2025” moved by Rana Iradat Sharif Khan, Member National Assembly (MNA) (Private Member’s Bill), and recommended that the Bill might be passed by the National Assembly as amended.
The committee also considered “The Export Import Bank of Pakistan (Amendment) Bill, 2026” (Government Bill) and recommended that the bill might be passed by the National Assembly as amended.
The committee considered and deferred “The Netting of Financial Arrangements Bill, 2025” (Government Bill), “The Fiscal Responsibility and Debt Limitation (Amendment) Act, 2026” (Government Bill), “The Financial Institutions (Recovery of Finance) Amendment Act, 2026” (Government Bill), and “The National Counterfeit Currency Control Authority Bill, 2026” (Private Member’s Bill), moved by Ms. Shahida Rehmani, MNA, for the next meeting of the Committee.
The committee unanimously approved the minutes of its previous meeting.
The meeting was attended by MNAs Rana Iradat Sharif Khan, Syed Sami Ul Hassan Gilani, Mr. Ali Zahid, Dr. Nafisa Shah, Mirza Ikhtiar Baig, Mr. Arshad Abdullah Vohra, Mr. Muhammad Jawed Hanif Khan, and Ms. Shahida Begum.
The meeting was also attended by Bilal Azhar Kayani, Federal Minister of State for Finance, Mr. Qaiser Ahmed Sheikh, Federal Minister for Maritime Affairs, the advisor to speaker for Legislation, Parliamentary Practices and Trainings, the Finance Secretary, Chairman Federal Bureau of Revenue, and officers from the Finance Division, Revenue Division, and Board of Investment, along with their senior officers.
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