The Senate Standing Committee on Finance and Revenue has decisively rejected the government's proposal to impose an 18 percent sales tax on mobile phones priced up to $200 (roughly Rs56,000).
The decision was made during a meeting chaired by Senator Salim Mandviwalla on Saturday.
Senator Anusha Rehman voiced strong opposition to the proposed tax, asserting that mobile phones are essential items rather than luxuries. She highlighted that the imposition of such a tax would disproportionately affect lower-priced phones, making them unaffordable for many consumers.
"Mobile phones are necessities, not luxuries.This tax would place an undue burden on the poor," Rehman emphasized.
The senator further criticised the federal government for imposing excessive financial burdens on the less privileged segments of society to meet the International Monetary Fund's (IMF) demands. She pointed out that there are already numerous taxes on mobile phones, including levies on calls and charging services.
Senator Mandviwalla echoed these sentiments, expressing concern over the impact of the Federal Board of Revenue's (FBR) tax policies on investor confidence. He lamented that the current tax regime is deterring investors from engaging in the country, thereby hindering economic growth.
