ISLAMABAD: The National Assembly’s Standing Committee on Finance has directed the FBR and Tax Policy Unit to consider rationalisation of duty and taxes on imported mobile phones in the upcoming budget for 2026-27.
Initially, there was a proposal to reduce the sales tax from 25 to 18 percent on high-end mobile phones in CBU condition that exceed $500. Cellular phones with an import value of less than $500 are subject to an 18 per cent sales tax.This issue came to the surface during the NA Standing Committee on Finance and Revenues meeting here at the Parliament House on Thursday held under the Chairmanship of Syed Naveed Qamar.
Syed Naveed Qamar, the Chairman of the NA Panel, directed the Tax Policy Unit/FBR to come up with an out-of-box solution to end the traditional policy of imposing restrictions on imports.
Head of Tax Policy Unit, Dr Najeeb, categorically informed the meeting that there is no space to reduce the standard rate of 18 percent sales tax on imported mobile phones, as well as withholding income tax. Presently, minimum withholding tax is applicable on imported mobile phones under the policy of “pay as you earn”.
