The Federal Board of Revenue (FBR) is preparing a detailed proposal to rationalise duties and taxes on mobile phone imports, following criticism from lawmakers over the affordability of smartphones.
Business Recorder reported, citing official sources, that the proposal is being drafted for submission to the National Assembly Standing Committee on Finance and will include a review of existing tax rates as well as consultations with the Pakistan Telecommunication Authority.
During discussions with tax authorities, cellular mobile operators proposed the withdrawal of regulatory duties on telecom power equipment that is not locally manufactured and called for rationalisation of duties on telecom equipment. They also argued that telecom services should be excluded from the retail price list regime, as operators do not import goods for direct sale.
FBR officials said taxes on mobile phone imports require adjustment in line with current market conditions, noting that average smartphone prices have declined in recent months. Authorities indicated that coordination with the Ministry of IT could help align tax rates with prevailing price trends, while valuations found to be above market levels would be revised.
During fiscal year 2024–25, the FBR collected Rs82 billion in taxes from mobile phone imports, including Rs18 billion from high-end smartphones, accounting for around 23 to 24% of total mobile-related tax receipts.Â
Data shows that only a 5% duty applies to phones imported in CKD or SKD form for local assembly, with domestically assembled models available from around Rs15,000.
