Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry informed the Senate that the government is actively reviewing proposals aimed at providing relief in PTA mobile phone taxes for overseas Pakistanis visiting the country. Responding to a supplementary question raised by Senator Abid Sher Ali during the Senate question hour session, the minister said overseas Pakistanis have consistently raised concerns regarding the high taxes imposed on mobile phones brought from abroad. He noted that these concerns were repeatedly highlighted during overseas conventions held in Pakistan, where expatriates called for a more flexible approach to PTA tax regulations on personal mobile devices carried during their visits.
Dr Tariq Fazal Chaudhry explained that mobile phones brought into Pakistan from overseas remain operational only for a limited duration before services are suspended if the prescribed PTA taxes are not paid. He added that different tax slabs currently apply to different smartphone models, depending on their specifications and market value. According to the minister, the government is seriously considering measures to ease this burden on overseas Pakistanis as part of broader efforts to improve facilitation for expatriates. He further stated that the government is focusing on creating a more supportive environment for overseas Pakistanis, particularly at a time when Pakistan is witnessing signs of economic improvement and increasing international investment interest across various sectors.
The discussion around mobile phone taxation has gained renewed attention following recent deliberations by the National Assembly Standing Committee on Finance and Revenues. The committee directed FBR and the Tax Policy Unit to examine options for rationalising duties and taxes on imported mobile phones in the upcoming 2026 to 2027 federal budget. Reports discussed during the meeting suggested there was an initial proposal to reduce sales tax on high end imported mobile phones in Completely Built Unit condition from 25 percent to 18 percent for devices valued above $500. At present, mobile phones imported with a value below $500 are already subject to an 18 percent sales tax. The matter was discussed during a meeting of the NA Standing Committee on Finance and Revenues held at Parliament House under the chairmanship of Syed Naveed Qamar.
During the committee proceedings, Syed Naveed Qamar directed FBR and the Tax Policy Unit to explore practical alternatives to the traditional policy of restricting imports through heavy taxation measures. The committee was informed that there are ongoing discussions regarding ways to balance revenue generation with consumer affordability and facilitation for overseas Pakistanis. Head of the Tax Policy Unit Dr Najeeb informed lawmakers that there was currently no fiscal space available to reduce the standard 18 percent sales tax or the withholding income tax imposed on imported mobile phones. He also explained that minimum withholding tax continues to apply under the existing “pay as you earn” taxation policy for imported devices. The ongoing review of PTA mobile tax policies is expected to remain part of wider discussions related to taxation reforms, smartphone imports, and overseas Pakistani facilitation measures ahead of the next federal budget.
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