The Senate Standing Committee on Finance has recently declined a proposal to impose an 18% sales tax on mobile phones valued up to $200.
The decision came during a session chaired by Salim Mandviwalla, where the committee considered the impact of such a tax. Committee member Anusha Rahman argued that mobile phones under $200 do not constitute luxury items and that imposing this tax would unfairly increase the cost of more affordable phones, disproportionately affecting the economically disadvantaged, in response to pressures from the IMF.
Rahman further criticized the Federal Board of Revenue (FBR), claiming its policies have driven investors out of the country and imposed undue financial burdens on the lower-income segments through multiple taxes on phone usage, call charges, and mobile credit.
Ultimately, the committee unanimously resolved to reject the proposal for a sales tax on mobile phones priced up to $200, siding with concerns over economic equity and consumer affordability.
