The Senate Standing Committee on Finance has ordered a formal review of all taxes applied to imported and locally manufactured mobile phones in the country.
The Standing Committee on Finance and Revenue held its twenty-third meeting on Wednesday in Parliament House in Islamabad under Chairman Syed Naveed Qamar.
The committee received a full briefing on current tax rates covering income tax and sales tax on both imported and locally produced mobile phone devices.
Officials presented the tax structure for CBU and CKD or SKD imports, calculated based on the assessed value of each mobile phone device.
The briefing also covered relevant provisions under the Income Tax Ordinance 2001 and the Sales Tax Act 1990, which govern mobile phone taxation in Pakistan.
Sales tax on mobile phones currently ranges from 18 to 25 percent depending on the device’s assessed value and its classification category.
Chairman Qamar expressed concern that income tax on mobile phones is being applied and collected in the same manner as sales tax in Pakistan.
He directed the Tax Policy Office to prepare a written note covering the rationale, revenue impact, and policy goals of existing mobile phone tax rates.
The written note must specifically address the tax treatment of CBU and CKD or SKD mobile phone categories imported into Pakistan each year.
The committee also reviewed existing exemptions for mobile phones imported by blind persons and those brought in under personal baggage rules in Pakistan.
Members recommended the current tax structure be revised to promote equity, consumer affordability, and greater encouragement of local mobile phone manufacturing.
The committee also called for a review of existing exemptions available under the Income Tax Ordinance 2001 and the Baggage Rules 2006.
In addition to mobile taxation, the committee unanimously approved the Special Economic Zones Amendment Act 2026 and recommended it pass through the National Assembly.
The Parliamentary Budget Office Bill 2025, a private member’s bill, and the Export Import Bank of Pakistan Amendment Bill 2026 were also approved by the committee.
Four other bills, including the Fiscal Responsibility and Debt Limitation Amendment Act 2026, were deferred by the committee to its next scheduled meeting.
