The Federal Board of Revenue (FBR) is considering ways to lower the tax on mobile phones in the federal budget for the fiscal year 2023–24, which is anticipated to be unveiled on June 9.
Previously, the government was required to increase the tax on mobile phones by 100% to 150%, which had the effect of reducing the amount of money being deposited into the national exchequer from Rs85 billion to only Rs5 billion to Rs10 billion.
Over 186.9 million people in Pakistan now use mobile phones.
A suggestion for a noticeable drop in the rates of levies on cell phones—which are currently between 100% and 150% on small and large mobile phones—is under discussion in the new budget as a way to address the financial crisis of the current fiscal year.
Due to an increase in taxes, the mobile sector is in danger of failing. Not only did it have an impact on the traders, but it also made it impossible for millions of individuals to make a living.
Ishaq Dar, the finance minister, and other top officials reportedly received recommendations from a delegation of the Mobile Phones Traders Association.
According to information obtained, Pakistan has a 75% duty on mobile phones, compared to other nations in the region like Singapore, Bangladesh, and Turkey, where the duty is not so high. People are using smartphones without paying taxes because of this, working with FBR.
The poor, workers, daily wage earners, students, professionals, members of the legal profession, and members of civil society are no longer able to afford cell phones due to the additional 100% to 150% duty.
According to Munir Beg Mirza, general secretary of the All Pakistan Mobile Phones Traders Association, smuggling has surged as a result of the prohibition on the import of used mobile phones in order to advantage a few businesses.
Additionally, people are using smartphones illegally to enjoy all of their features without paying high taxes, which is costing the national coffers money.
If a proper charge was imposed in the coming fiscal year, he claimed, not only would every customer pay tax but the government would also receive Rs100 billion instead of Rs5 billion from phone sales.
