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PTA Tax Reduction Considered for Mobile Phones in Budget 2026-27

PTA tax reduction considered

PTA tax reduction considered by the National Assembly Standing Committee on Finance. The committee recommended lowering mobile phone taxes on Thursday. Lawmakers reviewed duties on imported and locally assembled devices. Tax officials assured the committee of a budget review. The upcoming fiscal year 2026-27 will decide the outcome. FBR Chairman Rashid Mahmood Langrial briefed the meeting. Tax Policy Office officials also attended the session.

The numbers shocked committee members. Imported phones above $500 face a total tax burden of Rs. 76,000. That equals a 54 percent tax rate. Devices in the $700 to $750 range pay even more. Their tax rate hits about 55 percent. Locally assembled phones get better treatment. They face only a 25 percent tax rate. The gap between imported and local creates market distortions.

PTA tax reduction considered but GST remains untouchable. An 18 percent general sales tax applies to all mobile phones. Concessional income tax adds another layer. Withholding tax of roughly Rs. 11,500 hits expensive devices. FBR officials said no scope exists to reduce GST or withholding tax. Committee Chairman Sayed Naveed Qamar pushed back strongly. Sales tax already applies. Why add extra income tax on phones?

The chairman demanded a clear and transparent mobile phone taxation policy. The next federal budget must present it. Uncertainty hurts the industry. Modern technology needs encouragement, not punishment. Lawmakers want cheaper phones for ordinary Pakistanis. The finance ministry will now review the proposal. Budget 2026-27 could bring relief.

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