'Too much tax' imposed on mobile phones, says lawmaker

• FBR to review valuation mechanism by March.
• Only 6% phones imported in Pakistan, says PTA.
• Committee urges serious work on reducing taxes.

ISLAMABAD: The National Assembly’s Standing Committee on Finance on Wednesday discussed growing concerns over what lawmakers described as excessive taxation on smartphones, with members warning that high duties were pushing devices further out of public reach.

"There’s too much tax on smartphones; they already cost too much and are beyond the common man’s reach," PPP MNA Qasim Gillani said during the meeting in Islamabad, adding that consumers were even forced to pay tax again if their phones were stolen.

FBR Chairman Rashid Langrial told the committee that prices of several major brands had fallen, but acknowledged concerns over valuation. "If the FBR rate is higher than the market rate, it will be reduced," he assured.

Tax officials added that duties were applied to the phone’s price, not the model.

The FBR will present its report on the smartphone tax mechanism in March. Tax officials said mobile phones contributed Rs82 billion in revenue last fiscal year.

Committee Chairman Syed Naveed Qamar stressed that "work is needed to reduce taxes on smartphones," while another member suggested placing mobile phones in the Eighth Schedule to ease consumer costs.

PTA Chairman Major-General Hafeezur Rehman said only 6% of expensive smartphones were imported, with the rest assembled locally.

He added that the 5G licence would be issued between February and March next year.