Overview
- Lawmakers directed the Finance Ministry and FBR to submit a detailed reform plan on smartphone taxation by mid‑March 2026.
- FBR Chairman Rashid Langrial told senators the burden falls mainly on buyers of pricey imported models, saying it is a “5%‑customer issue” and applies only to imports as 95% of phones are made locally.
- Briefings to parliament indicated imported handsets face effective taxes above 55% compared with roughly 6% on locally assembled devices, creating a strong price distortion.
- Tax officials reported Rs82 billion in revenue from mobile phone taxes in the last fiscal year under the existing regime.
- Langrial pledged to cut customs valuation rates where they exceed market prices, while the PTA noted only about 2% of locally assembled phones support 5G and a spectrum licensing window is planned for February–March 2026.