Summary The chairman committee questioned the existing tax structure and urged submission of a comprehensive policy note. The committee was briefed on the duties and taxes levied on mobile phones.
ISLAMABAD (APP) - The National Assembly Standing Committee on Finance and Revenue on Thursday ordered for urgent review of mobile Phone tax regime and sought fair taxation and consumer relief.
The issued was discussed in the 23rd meeting of the Standing Committee on Finance and Revenue held here under the Chairmanship of Syed Naveed Qamar, Member National Asssembly.
The chairman committee questioned the existing tax structure and urged submission of a comprehensive policy note. The committee was briefed on the duties and taxes levied on mobile phones.
The committee was apprised of the existing taxation applicable to mobile phones, including the rates of income tax and sales tax imposed on imported as well as locally manufactured devices. The briefing covered the tax structure for CBU and CKD/SKD imports based on the assessed value of mobile phones, along with the relevant provisions of the Income Tax Ordinance, 2001, and the Sales Tax Act, 1990.
The committee was further informed about the statutory exemptions available for mobile phones imported for blind persons and those brought under personal baggage rules, as well as the applicable sales tax rates ranging from 18 percent to 25 percent ad valorem depending upon the value and classification of the device.
Chairman Syed Naveed Qamar expressed displeasure and observed that income tax was also being treated as sales tax. He directed the Tax Policy Office to review the matter and furnish a comprehensive written note on the rationale, revenue impact, and policy objectives of the existing tax rates on imported and locally manufactured mobile phones, particularly in respect of CBU and CKD/SKD categories.
