By Ali Imran
Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry on Thursday apprised the Senate that the government was seriously considering proposals to provide relief in PTA mobile phone taxes for overseas Pakistanis to facilitate expatriates visiting the country.
Responding to a supplementary question raised by Abid Sher Ali during question hour, the minister said overseas Pakistanis had repeatedly demanded relaxation in PTA taxes on mobile phones during overseas conventions held in Pakistan.
He said mobile phones brought from abroad remained functional for a limited period of a few weeks, after which services were suspended unless the prescribed PTA tax was paid.
The minister said different tax rates had been fixed for different mobile phone models, and the issue of easing the burden on overseas Pakistanis was currently under serious consideration by the government.
Tariq Fazal said the government was making efforts to facilitate overseas Pakistanis, particularly at a time when Pakistan was witnessing improving economic conditions and growing international investment interest.
The development comes weeks after the National Assembly’s Standing Committee on Finance directed the FBR and Tax Policy Unit to consider rationalisation of duty and taxes on imported mobile phones in the upcoming budget for 2026-27.
Initially, there was a proposal to reduce the sales tax from 25 to 18% on high-end mobile phones in CBU condition that exceed $500. Cellular phones with an import value of less than $500 are subject to an 18% sales tax, according to a The News report.
This issue came to the surface during the NA Standing Committee on Finance and Revenues meeting at the Parliament House held under the Chairmanship of Syed Naveed Qamar.
Syed Naveed Qamar, the Chairman of the NA Panel, directed the Tax Policy Unit/FBR to come up with an out-of-the-box solution to end the traditional policy of imposing restrictions on imports.
Head of Tax Policy Unit, Dr Najeeb, categorically informed the meeting that there is no space to reduce the standard rate of 18% sales tax on imported mobile phones, as well as withholding income tax.
Presently, minimum withholding tax is applicable on imported mobile phones under the policy of “pay as you earn”.
