Web Desk: Pakistan’s National Assembly Standing Committee on Finance and Revenue has directed the Federal Board of Revenue (FBR) to work with the Pakistan Telecommunication Authority (PTA) on a proposal that would allow consumers to pay smartphone registration taxes in installments.
The committee issued the directive during a meeting on Sunday after lawmakers raised concerns about the large number of non-PTA-approved mobile phones circulating in the local market.
Committee members argued that the current tax regime places a significant financial burden on consumers seeking to register imported smartphones. They said the government should introduce an installment-based payment system to make compliance more affordable.
Lawmakers noted that consumers in many countries routinely purchase even low-cost products through installment plans. Therefore, they said allowing phased payments for PTA registration charges and related taxes could encourage more users to legalize their devices.
Committee Chairman Syed Naveed Qamar instructed the FBR to coordinate with the PTA and develop a framework for an installment facility covering mobile phone taxes and registration fees.
Meanwhile, some committee members questioned whether the existing tax structure primarily serves as a revenue generation tool or functions to protect certain local manufacturers from foreign competition.
In response FBR officials defended the current tax regime saying smartphone-related taxes remain an important source of government revenue.
However, Finance Secretary officials cautioned that any reduction in taxes on lower priced mobile phones could have fiscal implications. According to the ministry lowering duties and taxes on budget devices would create an estimated revenue shortfall of Rs. 1 billion which the government would need to offset through alternative measures.
The discussion comes amid broader debate over mobile phone taxation in Pakistan, where policymakers are weighing revenue considerations against efforts to improve smartphone affordability and increase digital connectivity.
The FBR and PTA have yet to announce a timeline for presenting the proposed installment payment mechanism.
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