NA Committee Pushes FBR to Reduce Heavy Smartphone Taxes in Pakistan

The National Assembly Standing Committee on Finance has intensified pressure on the Federal Board of Revenue (FBR) to revise Pakistan’s smartphone tax structure, directing authorities to prepare a detailed relief plan after lawmakers warned that current duties have made even mid-range mobile phones unaffordable for citizens.

Chaired by Syed Naveed Qamar, the committee held an extensive session in Islamabad, where lawmakers voiced frustration over excessive taxation on imported and locally registered smartphones. Qamar said mobile phones were now a daily essential and could “no longer be treated like luxury vehicles.”

He highlighted growing complaints from overseas Pakistanis, who are forced to pay heavy duties when bringing personal devices into the country. Members including Ali Qasim Gilani criticized FBR’s inflated valuation system, noting that even 6 to 8 year-old iPhones are taxed at unrealistically high rates. He said the iPhone 16 was valued at USD 1,600 despite selling for far less.

FBR and PTA Brief Committee on Tax Structure

FBR Chairman assured that any valuation found above market price would be revised and said smartphone taxes could be rationalized in consultation with the IT Ministry. The FBR collected Rs 82 billion in mobile related taxes last fiscal year, including Rs 18 billion from smartphones.

PTA clarified it imposes no direct taxes and added that 94 percent of smartphones used in Pakistan are now locally assembled. The telecom regulator also confirmed that Pakistan’s 5G spectrum auction is planned for February-March 2026.

Lawmakers Call Taxation ‘Excessive and Unfair’

Dr. Sharmila Farooqi said she purchased a Rs 370,000 phone but refused to open the box because the tax alone amounted to Rs 190,000. She termed the structure “unfair and suffocating.” Industrialist Mirza Ikhtiar Baig emphasized that smartphones were widely used by all income groups and urged the government to adopt a fair valuation mechanism.

Committee Directs FBR to Submit Tax Relief Plan

The Standing Committee instructed FBR and the Tax Policy Office to jointly reassess the current framework and submit an evidence-based report, including international comparisons and proposed reforms, by March 2026.

During the same meeting, the Committee approved amendments to the Corporate Social Responsibility Bill, 2025, and the Income Tax Ordinance (Third Amendment) Bill, 2025, while deferring the Netting of Financial Arrangements Bill, 2025, for further revision.