Budget 2024-25: Major update related to 18pc sales tax on mobile phones

In a significant move, the Senate Standing Committee on Finance has turned down the proposal to impose an 18% sales tax on mobile phones priced up to $200 (roughly Rs56,000).

The decision is a relief for consumers and the mobile phone industry, which has been under considerable pressure due to the proposed tax hike.

During the committee meeting, representatives from the mobile phone industry presented their concerns, stating that the 18% sales tax would lead to a significant increase in mobile phone prices.

The proposal for an 18% sales tax on mobile phones was initially suggested by the Federal Board of Revenue (FBR) as part of the budgetary measures for the fiscal year 2024-2025.

However, the proposal was met with widespread criticism from industry stakeholders, consumer rights groups, and the general public, who argued that such a high tax rate would make mobile phones unaffordable for many and could stifle technological advancement and digital inclusion efforts.