The Senate Standing Committee on Finance and Revenue has rejected the government’s proposal to impose an 18 percent sales tax on mobile phones priced up to $200 (approximately Rs. 56,000).

The decision was made during a session chaired by Senator Saleem Mandviwala

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Committee member Anusha Rehman emphasized that mobile phones are essential items rather than luxury goods. She argued that such a tax would disproportionately impact low-cost phones, making them unaffordable for many consumers.

Senator Rehman criticized the federal government for burdening the poor to satisfy the International Monetary Fund’s demands. She noted that there are already multiple taxes on mobile phones, including those on calls and charging services. Additionally, she expressed concern that the Federal Board of Revenue’s (FBR) tax policies are deterring investors from the country.

The committee will continue to review tax policies, with further discussions and evaluations of alternative budget enforcement measures expected.