The Pakistan Telecommunication Authority (PTA) has formally urged the government to lower the heavy taxes imposed on mobile phones imported into the country. The authority highlighted that the current taxation system is not only burdensome for consumers but is also negatively affecting the telecom industry and digital inclusion across Pakistan.
PTA Clarifies Its Role in Mobile Phone Taxation
During an AI conference, Brig. (R) Amir Shahzad, Director General of Licensing at PTA, clarified that PTA does not impose or collect mobile phone taxes. Instead, tax policies and collections fall under the jurisdiction of the Federal Board of Revenue (FBR).
He emphasized that high taxes are a long-standing concern for the public, and the PTA supports reducing them to improve affordability and access to modern smartphones.
“The public’s long-standing demand for tax relief aligns with the authority’s own stance, as high taxation has affected all stakeholders, including consumers and industry officials.”
— Brig. (R) Amir Shahzad, PTA
He further added that PTA officials are just as affected as ordinary citizens:
“PTA officials do not receive any free mobile devices or tax exemptions. We purchase mobile phones like everyone else and pay all applicable duties and taxes.”
Lawmakers Push for Tax Reform
The issue gained political support as well. MNA Syed Ali Qasim Gilani, a member of the National Assembly’s Finance Standing Committee, strongly recommended revisiting the current mobile phone taxation framework.
He highlighted that phones valued above USD 500 are subjected to:
- 25% sales tax
- 18% general sales tax
This results in extremely high final prices for modern devices, making them unaffordable for a large portion of Pakistan’s population.
Gilani argued that unfair taxation restricts access to essential digital tools in today’s technology-driven world.
Impact on Consumers and Overseas Pakistanis
High taxes on imported mobile devices have become a major concern for overseas Pakistanis who frequently bring phones into the country. Many complain that excessive duties make even gifts or personal-use devices extremely expensive.
Local consumers also face financial challenges due to:
- Increased smartphone prices
- Barrier to upgrading to newer technology
- Limited access to digital services tied to smartphones
Industry Concerns and Digital Inclusion
Representatives from the telecom and mobile phone industry have warned that high taxation is slowing market growth, reducing device sales, and hindering Pakistan’s progress toward broader digital inclusion.
Affordable smartphone access is crucial for:
- Online education
- Remote work
- E-commerce
- Digital banking
- Government services
PTA believes that reducing tax burdens would help expand the digital ecosystem and support national digital transformation goals.
PTA’s Recommendation
PTA has suggested that the government review the entire taxation structure on mobile phones to make modern devices more affordable, promote digital adoption, and stimulate market growth.
If the FBR and policymakers respond positively, Pakistan could witness:
- Increased smartphone imports
- Greater accessibility for consumers
- Enhanced digital connectivity
- Boosted telecom sector performance
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