Pakistan Parliamentary Panel Reviews High Mobile Phone Taxes and SMS Charges
The National Assembly Standing Committee on Finance in Pakistan has directed the Tax Policy Office to review the high tax burden on mobile phones, citing concerns over affordability and equity. Chaired by MNA Naveed Qamar, the committee argued that income tax on devices effectively functions as a double sales tax. Officials reported that imported phones face an effective tax rate of approximately 54-55%, while locally assembled units are taxed at around 25%. The committee recommended reducing these taxes to support local manufacturing and improve access to technology, with assurances from the Federal Board of Revenue that the issue will be addressed in the upcoming fiscal budget. Separately, the Senate Standing Committee on Finance scrutinized high SMS alert charges imposed by banks and telecom companies. Senator Saleem Mandviwalla expressed dissatisfaction with the lack of data submission from telecom firms and instructed the Pakistan Telecommunication Authority to develop a comprehensive solution. The Senate panel also discussed promoting the domestic PayPak payment system to reduce reliance on international networks, noting its increasing adoption and co-badging with Visa.
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Pakistan Parliamentary Panel Reviews High Mobile Phone Taxes and SMS Charges
The National Assembly Standing Committee on Finance in Pakistan has directed the Tax Policy Office to review the high tax burden on mobile phones, citing concerns over affordability and equity. Chaired by MNA Naveed Qamar, the committee argued that income tax on devices effectively functions as a double sales tax. Officials reported that imported phones face an effective tax rate of approximately 54-55%, while locally assembled units are taxed at around 25%. The committee recommended reducing these taxes to support local manufacturing and improve access to technology, with assurances from the Federal Board of Revenue that the issue will be addressed in the upcoming fiscal budget. Separately, the Senate Standing Committee on Finance scrutinized high SMS alert charges imposed by banks and telecom companies. Senator Saleem Mandviwalla expressed dissatisfaction with the lack of data submission from telecom firms and instructed the Pakistan Telecommunication Authority to develop a comprehensive solution. The Senate panel also discussed promoting the domestic PayPak payment system to reduce reliance on international networks, noting its increasing adoption and co-badging with Visa.
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