The Senate committee has sought a clearer valuation mechanism for imported mobile phones and reports on the existing tax structure.
ISLAMABAD: A Senate committee has recommended an immediate reduction in taxes on imported mobile phones and directed customs authorities to establish a clear mechanism for determining their valuation and taxation.
The recommendation was made during a meeting of the Senate Standing Committee on Cabinet Secretariat, chaired by Senator Rana Mahmood-ul-Hassan. The committee reviewed the pricing and taxation structure applicable to imported mobile phones.
Pakistan Telecommunication Authority (PTA) officials told the committee that customs authorities needed to establish a proper mechanism for determining the prices of imported mobile phones.
Following the briefing, the committee directed customs officials to devise a mechanism for mobile phone valuation and taxation while recommending an immediate reduction in the taxes imposed on imported devices.
Senator Abdul Qadir questioned whether mobile phones should be taxed at all, saying the government needed to consider the basis for imposing such taxes.
Officials from the Federal Board of Revenue (FBR) told the committee that the authority to impose or abolish taxes rests with Parliament.
The committee subsequently sought reports from the FBR and the National Tariff Commission on the existing taxation structure for mobile phones.
During the meeting, Senator Dilawar Khan criticized Pakistan’s policymaking, saying national policies were not being formulated with a long-term perspective.
PTA officials also informed the committee that 35 companies are currently manufacturing smartphones in Pakistan, highlighting the expansion of local mobile phone production.
Senator Sadia Abbasi called for greater facilitation of businesses and consumers, saying the government should focus on supporting economic activity rather than placing excessive tax burdens on businesses and citizens.
“Instead of exploitation, businesses should be facilitated,” she said, adding that government revenue measures were creating difficulties for the public.
The meeting also discussed Pakistan’s expanding digital payments ecosystem. Cabinet Secretary Kamran Ali Afzal said digital payments were transforming the country’s payments system.
The cabinet secretary also opposed the imposition of sales tax on mobile phones.
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