Senate Panel Calls For Lower Mobile Phone Taxes

The Senate Standing Committee on Cabinet Secretariat has urged the government to reduce taxes on mobile phones and tablets, while also calling for action over high document verification charges and the timely completion of the Islamabad Club’s overdue audit.

The committee, chaired by Senator Rana Mahmood-ul-Hassan, reviewed several matters, including taxation on digital devices, Pakistan’s readiness for 5G technology, Islamabad Club membership, foreign citizenship declarations by civil servants and proposed regulations concerning government employees’ social media activities.

Senators Mohammad Abdul Qadir and Saadia Abbasi supported reducing taxes on digital devices, saying excessive taxation was placing an additional financial burden on both citizens and businesses.

Committee Chairman Rana Mahmood-ul-Hassan proposed completely removing taxes on tablets and reducing duties on mobile phones, warning that heavy taxation could slow the expansion of 5G technology in Pakistan.

Senator Dilawar Khan also backed lower taxes on budget-friendly mobile phones, arguing that making devices more affordable could expand access and eventually contribute to higher government revenue.

The Pakistan Telecommunication Authority (PTA) chairman told the committee that most locally manufactured mobile phones currently lack 5G support. He said manufacturers were being encouraged to begin assembling 5G-compatible devices within Pakistan.

The PTA chairman said 37 companies were currently assembling mobile phones domestically and were subject to different tax arrangements compared with imported devices. He added that 92% of mobile phones were currently not subject to tax, while the remaining 8% were taxed.

The committee was further informed that approximately 31 million mobile phones had been manufactured domestically, while the PTA Member (Policy) said locally produced phones were being used by 95% of the population.

The committee also expressed concern over fees being charged by offices associated with the Foreign Office for document verification services.

Rana Mahmood-ul-Hassan said the charges had reached excessive levels, claiming that some individuals were being asked to pay hundreds of thousands of rupees for document verification.

Islamabad Club representatives informed lawmakers that membership currently costs Rs2 million for parliamentarians and government officials, while other applicants are charged Rs10 million. Total membership is capped at approximately 10,000.

The committee was told that the Islamabad Club’s audit for the 2024-25 financial year remained incomplete. Members directed officials to complete it without further delay and postponed discussion of the matter until an updated report is presented.

The Establishment Division briefed the committee on regulations requiring civil servants to report any foreign citizenship within 30 days.

Officials who fail to comply may face disciplinary proceedings. Foreign-born recruits must declare their place of birth, while civil servants who obtain foreign citizenship while serving abroad are required to surrender it after returning to Pakistan.

Rana Mahmood-ul-Hassan emphasised that the relevant rules must be strictly implemented.

The committee also reviewed proposed regulations concerning social media use by civil servants, including a proposal to create a dedicated monitoring cell.

Under the proposed rules, government employees would retain the right to use social media privately but would be barred from using platforms such as TikTok and YouTube for self-promotion in their official capacity.

Officials said cases involving exemptions had demonstrated the need for clearer and more consistent regulations governing social media activity by government employees.