ISLAMABAD: National Assembly member Syed Ali Qasim Gilani has demanded an immediate review of the unusually high taxes imposed on mobile phones.
He said that the current tax system is hindering access to digital facilities for millions of Pakistanis and is slowing down the pace of the country’s technological development.
According to media reports, in a letter sent to the committee members, Gilani said that smartphones have now become indispensable for education, business, and access to government and financial services.
According to him, the high rates of import duty, sales tax, and registration fees imposed by the Federal Board of Revenue and the Pakistan Telecommunication Authority have become beyond the reach of the common citizen.
He said that mobile phones worth more than US $ 500 are now being charged 25 percent sales tax and 18 percent general sales tax.
Locally manufactured and imported phones are also subject to additional taxes, including fees collected under the Device Identification Registration and Blocking System.
Gilani said that all these costs are becoming a major obstacle for consumers, especially low-income earners and first-time smartphone buyers.
He said that mobile phones are no longer a luxury item but a fundamental means of economic and social inclusion. According to Gilani, this burden of taxes is harming digital inclusion efforts, increasing business costs and limiting the potential of the country’s growing online services sector.
He said that these policies can slow down the pace of innovation and weaken Pakistan’s competitiveness in the global digital economy.
He called on the government to adopt a balanced policy that ensures national revenue on the one hand and enables affordable provision of smartphones and the promotion of technology on the other.
Gilani requested the committee to urgently review the issue under the purview of its financial reforms.
