The Federal Board of Revenue (FBR) has clarified that taxes on costly imported smartphones apply to a very small share of consumers.
Briefing the Senate Standing Committee on Finance, FBR Chairman Rashid Mahmood Langrial said premiums on high-end models now average around Rs150,000 — making this a “5%-customer issue.” He noted that 95% of mobile phones sold in Pakistan are manufactured locally and remain unaffected by the tax structure.
Langrial argued that customers willing to pay hefty premiums for luxury devices should be able to bear the applicable taxes. “The issue lies entirely with high-end phones. If someone can pay a Rs150,000 premium, why can’t they pay the tax?” he remarked.
He assured the committee that duties apply only to imported phones, not locally produced ones, and that stakeholder concerns are being reviewed. A detailed report will be submitted to the National Assembly by March and shared with the committee.
During a National Assembly panel meeting, PPP MNA Qasim Gillani voiced concerns that steep smartphone taxes make devices unaffordable for ordinary users and that victims of phone theft sometimes face double taxation. Langrial acknowledged valuation issues and said any FBR rate exceeding the actual market price will be adjusted. Tax officials added that duties are levied based on the phone’s value, not its model.
Mobile phones generated Rs82 billion for the national exchequer last fiscal year, underscoring the sector’s revenue importance while affecting only a narrow band of high-end consumers.
