The Federal Board of Revenue (FBR) is looking for ways to decrease the taxes on mobile phones in the upcoming federal budget for the fiscal year 2023-24, which will be announced on June 9.
In the past, the government had increased the tax on mobile phones by 100% to 150%, resulting in a significant drop in revenue collection from Rs85 billion to only Rs5 billion to Rs10 billion. Currently, Pakistan has more than 186.9 million mobile phone users.
To address the financial challenges faced during the current fiscal year, the discussions for the new budget include a proposal to substantially reduce the taxes imposed on cell phones.
Currently, these taxes range from 100% to 150% for both small and large mobile phones. The mobile sector is under threat of struggling due to the high taxes, which has an impact on both traders and the livelihoods of millions of individuals.
Ishaq Dar, the finance minister, and other senior officials have reportedly received recommendations from a delegation representing the Mobile Phones Traders Association.
