Senate Committee Recommends Reduction in Taxes on Mobile Phones

ISLAMABAD: The Senate Standing Committee on Cabinet Secretariat has recommended reducing taxes imposed on imported mobile phones, saying excessive levies and taxes are creating difficulties for consumers.

The committee, chaired by Senator Rana Mahmood-ul-Hassan, reviewed the prices of imported mobile phones and the heavy taxes imposed on them during a meeting attended by senior officials from the Pakistan Telecommunication Authority (PTA), Federal Board of Revenue (FBR) and Cabinet Secretariat.

PTA officials briefed the committee that customs authorities needed to establish a transparent and appropriate mechanism for determining the actual prices of imported mobile phones.

The committee directed customs authorities to immediately develop an effective system and significantly reduce taxes on mobile phones.

The meeting also discussed the effectiveness of taxation on mobile phones. Senator Abdul Qadir questioned whether taxes should be imposed on ordinary mobile phones used by the general public.

In response, FBR officials said the final legal authority to impose or abolish taxes rested with Parliament.

Senator Sadia Abbasi strongly criticized government policies, saying that the government was creating difficulties for the public by imposing various levies and excessive taxes.

“The government’s job is not to exploit ordinary consumers but to facilitate businesses and ease the lives of citizens,” she said.

Senator Dilawar Khan pointed out that Pakistan’s economic and trade policies appeared to suffer from a serious lack of long-term planning.

At the conclusion of the meeting, Cabinet Secretary Kamran Ali Afzal told the committee that the country’s existing digital payment system was bringing a revolution to the financial sector.

He openly opposed imposing additional sales tax on the purchase and sale of mobile phones, warning that such measures could negatively affect the ongoing process of digitalization.