The Federal revenue department issues a signal of possible tax relief for low-cost imported mobile phones.FBR gives signal for tax relief on mobile phones of low price.
The Federal Board of Revenue (FBR) has suggested that it might look into cutting duties on lower-cost mobile phones, providing some relief to the consumers who depend on low-cost smartphones for communication, education and digital services.
The assurance was given in the National Assembly Standing Committee on Finance during a meeting to discuss, taxations on mobile phones and its impact on the public.
Officials say imported mobile phones are now subject to different tax rates based on the phones’ value, with the taxes getting higher as the phone gets costlier. Members of the committee said that the tasks they have currently are making mobile phones more costly for the general public, especially those buying costlier mobile phones.
In the course of the discussion, legislators spoke about the increasing reliance of Pakistanis on smartphones, and emphasized the need to maintain low prices for digital connectivity. Other members also mentioned that many are still using non-registered devices, and proposed making payment for mobile phone taxes more convenient.
The parliamentary committee suggested that the government consider an installment-based system under which consumers would be able to pay the taxes related to mobile in installments, instead of paying them in one go. Officials from the FBR and the Pakistan Telecommunication Authority (PTA) have been requested to consider the proposal and come up with viable suggestions.
Some lawmakers said consumers should not be taxed on mobile phones because that was an unnecessary burden, particularly for students and low-income families that rely on smartphones for learning, work and to use online services.
The FBR chairman assured the committee that any worry about taxing the mobile phones worth up to $200 would be considered during the pending discussions on tax policy and revenue measures.
The approved measures may render Smartphones more affordable to consumers and facilitate access to digital technology for all citizens of the country, if approved.
The issue will be on the agenda as policymakers continue to discuss the need to balance government revenue targets with consumer affordability, and digital inclusion objectives.
