• Committee finalises Finance Bill 2026 recommendations • Lawmakers seek relief for entry-level, mid-range phone users • FBR says mobile imports generate Rs37bn annually • Apple devices account for Rs21bn in mobile import revenue • Aircraft lease, spare parts tax relief extended beyond PIA • MNAs insist airline relief should reflect in ticket prices ISLAMABAD: A parliamentary committee on Sunday raised questions more than the government ’ s mobile phone taxation policy and proposed taxes on high-end electric vehicles, while in addition extending relief to airlines beyond Pakistan International Airlines. The National Assembly Standing Committee on Finance, chaired by MNA Naveed Qamar, concluded its series of meetings held for a clause-by-clause review of the Finance Bill 2026. Observers say this could mark a turning point in how the issue is addressed.

The Broader Picture

A broader look at the circumstances reveals why this development is being watched so closely.

During the proceedings, Sharmila Faruqui and Muhammad Javed Hanif submitted dissenting notes on the government ’ s electric vehicle policy and the existing tax structure on imported mobile phones, respectively.

The committee reviewed tax rates on imported and locally manufactured mobile phones, while officials outlined a tiered structure based on price.

In what observers are describing as a key detail, fBR Chairman Rashid Mahmood Langrial suggested that taxes on phones priced up to $ 200 could be reduced, but some members, including MNA Hina Rabbani Khar, questioned the intent behind the proposal.

Expert Analysis

The analysis from informed observers points to several important takeaways.

He warned that lowering taxes on low-priced phones could create a Rs1bn shortfall, which would need to be offset elsewhere.

What has become increasingly clear is that auto policy, EV taxes The committee in addition took up the proposed five-year automobile policy, as the current framework is set to expire on June 30.

In a related development, minister of State for Finance Bilal Azhar Kayani said the existing policy would lapse at the end of the month, while Commerce Secretary Jawad Paul briefed members on plans to rationalise duties across engine categories.

Impact on Americans

This marks the beginning of a process whose full implications are yet to be determined.

Under the proposals, total duties and taxes on 1800cc vehicles would be reduced from 156pc to 74pc.

At the same time, for cars between 1500cc and 1800cc, the combined rate would fall from 91pc to 57pc, whereas vehicles between 1000cc and 1500cc would see a reduction from 76pc to 52pc.

In a detail that has not gone unnoticed, customs duty on vehicles above 1800cc would be reduced from 100pc to 50pc, whereas rates for 1500cc to 1800cc cars would fall from 75pc to 45pc.

Significantly, the committee was also informed that customs duty on auto parts would be reduced from 35pc to 25pc, whereas specialised vehicles would continue to face a 30pc duty.

Against this backdrop, aviation policy The committee decided to extend sales tax exemptions on aircraft leases and spare parts purchases to all airlin

Looking Ahead

The events outlined in this report highlight the complexity and significance of the broader issue at hand. Stakeholders, policymakers, and the public are expected to closely monitor what comes next.