NA body for payment of cellphone taxes, registration fee in installments

Members of the National Assembly’s (NA) Standing Committee on Finance on Sunday proposed the payment of mobile phone taxes and registration fee in installments, reported 24NewsHD TV channel.

The meeting, which was presided over MNA Syed Naveed Qamar, held a detailed discussion on the taxes levied on mobile phones.

Federal Board of Revenue (FBR) Chairman Rashid Langrial, on the occasion, briefed the committee on the ratio of tax imposed on various categories of local as well as imported cellphones.

He said that the ratio of tax on mobile phones costing $30 was 25 per cent, while it was 36 per cent on phones costing between $31 and $100; 40 per cent on those costing $101 to $200; 38 per cent on those costing between $201 and $350; 40 per cent on cellphones costing between $351 and $500, and 41 per cent on mobile phones, whose cost exceeded $500.

Langrial informed that the tax ratio increased with an increase in the price of a cellphone. “Per unit tax jumps from Rs1,500 to Rs141,500;” he elaborated.

The FBR chairman told the committee that 44 per cent imported cellphones fell in the tax category of $31 to $100.

Calling for the introduction of a system in which taxes are paid in installments, the committee members said that in the entire world, even small items were available on installments.

Qamar directed the FBR and the Pakistan Telecommunication Authority (PTA) officials to together draw up a plan on installments and present it before the committee.

The FBR chairman said that tax could be reduced on cellphones, whose price was up to $200.

Hina Rabbani Khar, a committee member, asked whether the purpose of the measure was to generate more revenue.

Langrial replied that tax on cellphones generated revenue. “The FBR receives Rs37 billion by taxing imported cellphones,” he informed.

Reporter: Waqas Azeem