ISLAMABAD, April 16, 2026 — A parliamentary committee on Thursday ordered an urgent review of Pakistan’s mobile phone taxation regime, calling for fairer levies, improved consumer relief, and greater policy clarity amid growing concerns over affordability and market distortions.
The directive came during the 23rd meeting of the National Assembly Standing Committee on Finance and Revenue, chaired by Syed Naveed Qamar, held in Islamabad.
Lawmakers questioned the structure of existing duties on mobile phones and sought a detailed policy note from the Tax Policy Office explaining the rationale, revenue implications, and policy objectives behind current tax rates.
Officials briefed the committee on the existing tax framework applied to mobile phones, including income tax and sales tax on both imported and locally manufactured devices. The briefing covered taxation on Completely Built Units (CBU) and Semi Knocked Down/Completely Knocked Down (SKD/CKD) imports, assessed on declared values under relevant provisions of the Income Tax Ordinance, 2001, and the Sales Tax Act, 1990.
The committee was also informed about statutory exemptions, including relief for mobile phones imported for blind persons and those brought under personal baggage rules. Sales tax rates currently range from 18% to 25% ad valorem depending on device category and valuation.
Chairman Naveed Qamar expressed dissatisfaction over what he described as inconsistencies in the tax structure, noting that income tax was effectively being treated as sales tax in practice. He called for a comprehensive review of the system to ensure transparency and fairness.
“There is a need to examine whether the current framework aligns with policy objectives and consumer affordability,” Qamar said, directing officials to submit a detailed written explanation of the system.
The committee recommended a broader reassessment of mobile phone taxation to ensure equity between imported and locally assembled devices, encourage domestic manufacturing, and expand consumer access. Members also called for a review of existing exemptions under the Income Tax Ordinance and the Baggage Rules, 2006.
In addition to mobile taxation, the committee considered several legislative proposals. It unanimously recommended passage of “The Special Economic Zones (Amendment) Act, 2026,” “The Parliamentary Budget Office Bill, 2025,” and “The Export-Import Bank of Pakistan (Amendment) Bill, 2026,” subject to amendments.
However, multiple bills, including proposals related to financial netting arrangements, fiscal responsibility rules, banking recovery laws, and the establishment of a National Counterfeit Currency Control Authority, were deferred for further deliberation.
The meeting was attended by several members of the National Assembly, along with senior officials from the Finance Division, Revenue Division, Federal Board of Revenue, and Board of Investment. The presence of federal ministers and senior advisers underscored the importance of ongoing fiscal reforms and revenue policy review.
The committee’s recommendation is expected to trigger a broader reassessment of mobile taxation policy, which has long been criticised by industry stakeholders for contributing to higher handset prices and reduced affordability for consumers.