The Tax Policy Office will be asked to consider reducing taxes on older mobile phones, Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja told the Senate Standing Committee on Cabinet Secretariat.
She said the office had the authority to increase or decrease taxes on different products and suggested that its representatives be summoned to discuss possible relief for consumers.
The committee discussed mobile phone taxes during a meeting attended by officials from the Ministry of IT and Telecommunication, the Pakistan Telecommunication Authority (PTA) and the Federal Board of Revenue (FBR). Shaza Fatima said the Tax Policy Office should brief the committee on potential tax adjustments for older handsets.
The IT minister said 93 percent of mobile phones used in Pakistan were manufactured locally and that locally produced handsets were not subject to taxes. She added that imported mobile phones accounted for a relatively small share of the market, highlighting the role of domestic manufacturing in meeting demand.
FBR officials told the committee that a mobile phone’s model and storage capacity were key factors in determining applicable taxes. However, they said the PTA system did not identify phone models, creating a challenge in assessing taxes.
The discussion also covered the impact of mobile phone taxes on consumers and access to newer technology. Shaza Fatima said the import of 5G smartphones was not an issue and that FBR taxes were not affecting the adoption of 5G technology.
She added that the prime minister had directed the government to formulate a policy allowing consumers to purchase mobile phones through easy installments.
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