Senate Committee Votes Down Proposal for 18% Sales Tax on Mobile Phones

Islamabad: The Senate Standing Committee on Finance and Revenue has firmly rejected the government's proposal to impose an 18 percent sales tax on mobile phones priced up to $200 (approximately Rs56,000).

This decision was made during a meeting chaired by Senator Salim Mandviwalla on Saturday.

Senator Anusha Rehman strongly opposed the proposed tax, arguing that mobile phones are essential items rather than luxuries. She emphasized that the tax would disproportionately affect lower-priced phones, making them unaffordable for many consumers.

"Mobile phones are necessities, not luxuries. This tax would place an undue burden on the poor," Rehman stated.

The senator also criticized the federal government for imposing excessive financial burdens on the less privileged to meet the International Monetary Fund's (IMF) demands. She noted that there are already numerous taxes on mobile phones, including levies on calls and charging services.

Senator Mandviwalla echoed these concerns, expressing worry about the impact of the Federal Board of Revenue's (FBR) tax policies on investor confidence. He lamented that the current tax regime is deterring investors from engaging in the country, thereby hindering economic growth.