BUDGET 2026-27: NA body questions mobile taxes, EV policy

Pakistan's National Assembly Standing Committee on Finance has raised significant questions regarding the government's mobile phone taxation strategy and its proposed taxes on high-end electric vehicles. The committee, chaired by MNA Naveed Qamar, reviewed the Finance Bill 2026, finalizing recommendations that include seeking relief for consumers of entry-level and mid-range mobile phones.

During the review, Sharmila Faruqui and Muhammad Javed Hanif submitted dissenting notes concerning the electric vehicle policy and the existing tax structure on imported mobile phones. Officials presented a tiered tax system for mobile phones based on price, with rates ranging from 25% for phones up to $30 to 41% for those exceeding $500. The Federal Board of Revenue (FBR) stated that mobile imports generate approximately Rs37 billion annually, with Apple devices accounting for Rs21 billion of that revenue.

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no meaningful relief had been provided despite amendments.

Lawmakers expressed concern over the prevalence of non-PTA (Pakistan Telecommunication Authority) approved phones and proposed an installment-based tax payment system, citing international precedents. Committee Chairman Naveed Qamar directed the FBR to collaborate with the PTA to develop a feasible installment plan. Members also questioned the effectiveness of recent amendments in providing consumer relief, with MNA Javed Hanif Khan asserting that no meaningful relief had been offered. FBR Chairman Rashid Mahmood Langrial suggested potential reductions in taxes for phones priced up to $200, but some members, like Hina Rabbani Khar, questioned the underlying motives, asking if the move aimed to raise revenue or favor specific companies.

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whether the move was aimed at raising revenue or favouring a particular company.