ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has assured the National Assembly Standing Committee on Finance that the 20 percent regulatory duty on imported mobile phones could be reduced.

According to Express News, the meeting of the National Assembly Standing Committee on Finance was held on Sunday under the chairmanship of Committee Chairman Syed Naveed Qamar. The committee discussed matters related to taxes on imported and local mobile phones, the auto policy, electric vehicles, and import duties in detail.

During the session, the FBR Chairman assured the committee that the 20 percent regulatory duty on imported mobile phones could be reviewed, and tax reductions for phones valued up to USD 200 may be considered.

FBR officials briefed the committee that the tax rates on imported mobile phones currently stand as follows:

Phones valued up to USD 30: 25%
USD 31–100: 36%
USD 101–200: 40%
USD 201–350: effective rate 38%
USD 351–500: 40%
Above USD 500: 41%

Officials noted that tax rates increase with the value of the phone, with per-unit taxes ranging from PKR 1,500 to PKR 141,500. They added that 44 percent of imported phones fall into the USD 31–100 low-tax category, while the average effective tax across all imported phones is 39.6 percent.

During the session, committee members pointed out that millions of non-PTA registered mobile phones are currently in the market, and suggested introducing an installment system for paying taxes on mobile phones. They noted that small items are offered on installment plans in other countries.

Committee Chairman Syed Naveed Qamar directed FBR and PTA to jointly present a feasible plan for implementing the installment system.

Committee member Hina Rabbani Khar raised questions about mobile phone taxes, asking whether the measure is solely for revenue collection or to protect a specific company. She added that purchasing any mobile phone should not impose such a significant financial burden.

FBR Chairman Langrial explained that revenue from mobile phones contributes to national revenue targets, with annual taxes from imported phones totaling PKR 37 billion, and iPhones alone generating PKR 21 billion. He noted that a reduction in the low-cost phone tax slab could create a financial shortfall of around PKR 1 billion, which would need to be covered from other sources.

The Finance Secretary also supported this position, while committee member Javed Hanif Khan noted that Parliament is not bound and can express its opinion clearly if it disagrees.

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