The Senate Standing Committee on Cabinet Secretariat convened on Monday to address concerns over the high taxes imposed on imported mobile phones, recommending an immediate reduction. The committee questioned the current pricing mechanism and the heavy tax burden placed on consumers.
Chaired by Senator Rana Mahmood-ul-Hassan, the committee instructed Customs authorities to develop a clear method for valuing imported mobile phones. It also requested detailed reports from the Federal Board of Revenue (FBR) and the National Tariff Commission regarding the taxation of these devices.
Officials from the Pakistan Telecommunication Authority (PTA) emphasized that Customs must establish a standardized pricing mechanism for imported phones. Following this, the committee formally directed Customs to create a taxation and valuation framework for these imports.
Senator Abdul Qadir raised a critical question about the necessity of taxing mobile phones at all, urging policymakers to reconsider the rationale behind such levies. FBR representatives clarified that decisions on imposing, reducing, or abolishing taxes ultimately lie with Parliament.
Senator Dalwar Khan criticized the lack of consistent, long-term government policies, while Senator Sadia Abbasi advocated for facilitating businesses rather than burdening them with excessive taxes. She highlighted that the government’s current approach was creating hardships for the public.
PTA officials also noted the significant growth in local smartphone manufacturing, with 35 companies currently producing devices within Pakistan. Cabinet Secretary Kamran Ali Afzal opposed the sales tax on mobile phones, underscoring the transformative role of digital payments in the country’s financial system.
In a significant development, the committee received a comprehensive briefing from Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib on the expanding digital assets and cryptocurrency sector. Saqib explained that the global concept of money is evolving, with countries like Dubai, Thailand, and Singapore adopting alternative currency systems, and Hong Kong issuing bonds via blockchain technology.
He highlighted Pakistan’s young population’s growing interest in digital technologies and claimed the country ranks as the world’s third-largest crypto market, with approximately 40 million Pakistanis holding cryptocurrency accounts compared to about six million active taxpayers.
Saquib stated that PVARA was established to integrate cryptocurrency users into the formal tax system. He warned that limiting technology would hinder the country’s progress and noted that international digital currency firms, including Binance and HTS, have applied for no-objection certificates (NOCs) to operate in Pakistan.
The authority plans to take strict action against illegal digital asset companies after September 5. Recruitment efforts are ongoing at PVARA, which has utilized only around 8 percent of its government-allocated budget so far.
Looking ahead, Saqib expressed Pakistan’s ambition to become a global leader in Islamic finance through digital assets and aims to channel remittances onto digital platforms. He emphasized that Pakistani youth have developed a strong understanding of digital currencies and are actively engaging in the sector.
The Senate committee resolved to request another briefing from PVARA on digital asset regulation in a future session. This meeting thus addressed two critical facets of Pakistan’s evolving digital economy: the urgent need to reduce mobile phone taxes and the growing demand for cryptocurrency regulation.
