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Senate Committee Votes Against 18% Sales Tax on Mobile Phones

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Jun 26, 2024

The Senate Standing Committee on Finance and Revenue has rejected the government’s proposal to impose an 18% sales tax on mobile phones priced up to $200 (about Rs. 56,000).

During a session chaired by Senator Saleem Mandviwala on Saturday, committee members opposed the new tax. Anusha Rehman, a committee member, argued that mobile phones are essential items, not luxuries. She expressed concerns that such a tax would make cheaper phones too expensive for many consumers.

Senator Rehman criticized the federal government for burdening the poor to meet International Monetary Fund (IMF) requirements. She highlighted existing taxes on mobile phones, including charges for calls and charging services, and noted that these policies are discouraging investment in the country.

The committee plans to explore alternative budget measures as it continues to review tax policies.

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