The National Assembly Standing Committee on Finance discussed reducing taxes on mobile phones. Lawmakers reviewed the current tax system on imported and locally assembled devices. The Budget 2026-27 plan may lower ‘PTA Tax’ on mobile phones.

Tax officials told the committee that the issue will be reviewed during the upcoming budget process. Final decisions are expected to be part of Budget 2026-27.

Officials shared that imported mobile phones above $500 face a heavy tax burden. These devices currently carry around Rs76,000 tax with a total rate of 54 percent.

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Phones priced between $700 and $750 are taxed even higher. The tax rate on such devices reaches nearly 55 percent.

It was explained that imported phones are taxed at 54 percent of their value. In comparison, locally assembled phones face a lower tax rate of around 25 percent.

The committee was also informed about additional taxes on mobile phones. These include 18 percent GST and a withholding tax of about Rs11,500 on expensive models.

FBR officials clarified that there is no room to reduce GST or withholding tax at this stage. However, other tax components may still be reviewed.

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Committee Chairman Sayed Naveed Qamar stressed the need to promote modern technology. He said extra taxes are not justified when sales tax is already applied.

He also asked for a clear and transparent mobile taxation policy in the next budget. This, he said, would help remove confusion and improve the system.

If taxes are reduced, mobile phones may become more affordable. This could help more people access modern technology easily.