Business

Installment Plan Proposed for Paying PTA Taxes on Smartphones

The National Assembly Standing Committee on Finance and Revenue on Sunday ordered the Federal Board of Revenue (FBR) to launch an installment facility for paying PTA tax on smartphones.

Committee members said millions of non-PTA-approved phones are currently available in the local market and urged the government to introduce an installment facility for paying PTA and tax charges.

They argued that consumers worldwide buy even low-cost products on installments.

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Committee Chairman Syed Naveed Qamar directed the FBR to work with the Pakistan Telecommunication Authority (PTA) on a proposal to allow installment payments for mobile phone taxes.

Some lawmakers questioned whether the current tax structure was primarily aimed at increasing revenue or protecting certain manufacturers.

FBR officials maintained that the taxes are an important source of government revenue, while the Finance Secretary warned that lowering taxes on lower-priced phones would create an estimated Rs. 1 billion revenue shortfall that would need to be recovered elsewhere.

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Business Desk