Senate announces decision on 18% sales tax for mobile phones

The Senate Standing Committee has turned down the proposal to impose an 18 percent sales tax on mobile phones priced up to $200. The decision was made during a meeting chaired by Saleem Mandviwalla.

Anusha Rahman, a committee member, argued against the tax, stating, “Mobile phones are not a luxury item; taxing them will only make them more expensive.”

She highlighted that the burden of such a tax falls disproportionately on the poor, citing the International Monetary Fund (IMF) conditions as a reason for this.

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Rahman elaborated that the poor are already burdened with multiple taxes, including those on phone usage and charging. She also pointed out that these taxes are contributing to investor uncertainty, leading many to leave the country.

“The actions of the Federal Board of Revenue (FBR) are driving investors away,” Rahman emphasized, expressing concern over the economic impact of the proposed tax measures.