The Federal Board of Revenue (FBR) clarified its position on mobile phone taxes. Chairman Rashid Langrial stated that the policy impacts a small consumer segment. He made this statement before the Senate Standing Committee on Finance. The committee was reviewing a petition from the commerce industry chambers.
Langrial called this “only a 5%-customer issue.” He explained that 95% of phones in Pakistan are now locally manufactured. Therefore, only imported luxury devices are subject to the current tax structure. The FBR chairman noted premiums on new high-end models reach approximately Rs 150,000.
“The problem is entirely with high-end phones,” Langrial remarked. “If someone can pay a Rs 150,000 premium, why can’t they pay tax?” He reiterated that taxes apply solely to imported phones, not locally produced ones. The FBR chief also promised to address stakeholder concerns in detail.
Read: FBR Considers Tax Reduction on Used Mobile Phones for Overseas Pakistanis
He assured the committee that a formal report would be submitted. The FBR will present its findings to the National Assembly by March. The same report will also be shared with the Senate committee.
This clarification follows an earlier parliamentary debate. PPP MNA Qasim Gillani raised concerns in the National Assembly’s Standing Committee. He argued that smartphone taxes are excessive. Gillani stated that high costs already place devices out of reach for most people. He also highlighted an issue with taxation on stolen phones.
In that session, Chairman Langrial acknowledged valuation concerns. He assured members, “If the FBR rate is higher than the market rate, it will be reduced.” Tax officials provided additional fiscal context. They revealed mobile phones contributed Rs 82 billion in revenue last fiscal year. Duties are applied to the phone’s price, not the specific model.
