Senate panel seeks lower mobile taxes to support 5G rollout

According to Profit, a Senate standing committee on the Cabinet Secretariat has pressed for lower levies on handsets and tablets, warning that heavy duties could slow the introduction of 5G services. Chairman Rana Mahmood-ul-Hassan went further and asked for a full exemption on tablets, while senators Mohammad Abdul Qadir, Saadia Abbasi and Dilawar Khan argued that high taxes raise costs for citizens and businesses. Dilawar Khan also contended that cheaper phones reaching more buyers could eventually lift state revenue.

The PTA chairman told the committee that locally assembled phones generally lacked 5G support, though local makers are being encouraged to build 5G-enabled handsets. He said 37 firms assemble phones in Pakistan and face different tax treatment from imported devices. Of all phones, 92% carry no tax and 8% are taxed. He also cited 31 million domestically made phones, and the PTA Member (Policy) put the share of locally made phones in use at 95%.

The committee also questioned document verification fees charged by offices linked to the Foreign Office, and the chairman described the charges as excessive. Club officials gave the entry price as Rs2 million for legislators and state officials, against Rs10 million for outside applicants, and noted membership is capped at roughly 10,000. The club's FY2024-25 audit is still unfinished, so the committee ordered it completed promptly and put the agenda item on hold pending an update.