‘Mobile phones can no longer be treated as luxury goods’

Mobile phones could no longer be treated as luxury goods, nor considered comparable to high-value imported items such as luxury vehicles, the Standing Committee on Finance and Revenue chairman Syed Naveed Qamar said on Tuesday.

Qamar passed these remarks in the committee’s 21st meeting at the Parliament House, Islamabad.

The lawmaker expressed deep concern over what he described as the “unreasonably high” taxes imposed on mobile phones, as per an official release from the National Assembly.

“Instead, they [mobile phones] have become an essential tool for daily life, communication, education, financial transactions, and access to public services for the average citizen.”

Qamar stressed that excessive taxation on such “a basic item disproportionately burdens the common man, especially in the context of rising inflation and the financial hardships faced by many households”.

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He further noted that while the objective of taxation was to ensure revenue generation and regulate imports, the structure must remain fair, practical, and reflective of ground realities.

In this regard, he advised the Federal Board of Revenue (FBR) and the Tax Policy Office to revisit the prevailing tax rates applicable to mobile phone imports under the personal baggage and registration system.

Qamar emphasised the need for a balanced approach that safeguards revenue interests without undermining public accessibility to essential communication devices.

He directed both institutions to undertake a joint reassessment of the current tax framework and to develop evidence-based recommendations. He instructed them to prepare and submit a detailed report—covering policy options, economic impact, international comparisons, and proposed revisions—by March 2026, enabling the committee to examine the matter comprehensively in its forthcoming meeting.

The committee considered ‘The Corporate Social Responsibility Bill, 2025’, moved by Dr Nafisa Shah, MNA and recommended that the Bill, as amended, might be passed by the Assembly.

The committee received briefing from the Chairman of the Pakistan Telecommunication Authority (PTA) and the Chairman of the FBR on matters related to the taxation regime applicable to mobile phones brought into Pakistan by overseas Pakistanis.

Syed Ali Qasim Gillani, MNA, the Special Invitee and the Hon. Members of the Committee voiced “strong criticism over the substantial taxes imposed on mobile phones brought into Pakistan, particularly those carried by overseas Pakistanis”.

It was highlighted that excessive taxation on imported mobile devices was creating “undue hardship” not only for overseas Pakistanis but also for millions of local users.

He noted that both the PTA and FBR remained linked to the difficulties faced by citizens “who bring mobile phones from abroad, as these devices are taxed again upon entry into Pakistan”.

The committee also considered ‘The Income Tax Ordinance (Third Amendment) Bill, 2025’ (Government Bill) and recommended that the Bill, as amended, might be passed by the Assembly.

The committee considered ‘The Netting of Financial Arrangements Bill, 2025’ (Government Bill) and deferred for the next meeting with the directions that the finance division to revisit the legislative document by improving language with clarity of powers and qualification and present it in the next meeting of the committee.