Imported mobile phones: Panel directs MoF, FBR to rationalise duties, taxes

The National Assembly Standing Committee on Finance on Thursday directed the Tax Policy Unit of the Ministry of Finance and the Federal Board of Revenue (FBR) to urgently rationalise duties and taxes on imported mobile phones for announcement in the coming budget (2026-27). Primarily, the proposal was to reduce sales tax from 25 percent to 18 percent on high-end mobile phones in CBU condition exceeding USD 500. Mobile phones having an import value of less than USD 500 are subjected to 18 percent sales tax. However, the Federal Board of Revenue (FBR) as well as the Tax Policy Unit did not agree with the proposal of reducing sales tax from 25 percent to 18 percent on high-end mobile phones above USD 500. The issue was discussed in detail during the 23rd meeting of the Standing Committee on Finance and Revenue held here on Thursday under the Chairmanship of MNA Syed Naveed Qamar.