Mobile Phone Taxes in Pakistan

The debate over mobile phone taxes in Pakistan has intensified in recent months, with the Pakistan Telecommunication Authority (PTA) publicly urging the government to revisit and reduce the heavy duties placed on imported smartphones. From ordinary consumers to overseas Pakistanis and even government officials, the current tax structure has become a major concern. As discussions gain momentum in parliament, the demand for meaningful reforms has never been stronger.

This article explores the key reasons behind the growing call for tax reduction, the stance of PTA, the efforts of Member of the National Assembly (MNA) Ali Qasim Gilani, and the upcoming government review that may lead to policy changes.

1. PTA Clarifies: ‘We Don’t Collect Mobile Phone Taxes’

At a recent AI Conference, PTA’s Director General Licensing, Brigadier (Retd.) Amir Shahzad, stated openly that the public often misunderstands PTA’s role in mobile phone taxation.

He emphasized that only the Federal Board of Revenue (FBR) holds the authority to impose and collect taxes on imported mobile phones. PTA neither sets the tax rate nor benefits from the revenue.

He further clarified that even PTA officers do not receive any privilege or exemption and must pay the same taxes as ordinary citizens when purchasing or registering their devices.

This clarification is crucial because public frustration often gets misdirected toward PTA, while FBR is the actual decision-maker in taxation policy.

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2. Public and Overseas Pakistanis Demand Tax Relief

For years, the public has complained about extremely high mobile phone duties, especially on premium devices brought from abroad. Many overseas Pakistanis also argue that the tax system is unfair because:

• They are not allowed to bring even a single phone without paying tax.

• Returning citizens must pay taxes on phones they already own.

• Registering a mobile brought from abroad often costs more than the device itself.

This has created widespread resentment, leading to repeated calls for a reasonable, simplified tax structure that does not penalize consumers.

3. MNA Ali Qasim Gilani Calls Existing Taxes ‘Unjust and Unaffordable’

MNA Syed Ali Qasim Gilani, son of former prime minister Yousuf Raza Gilani, has emerged as the strongest political voice campaigning against excessive smartphone duties.

He argues that:

• High-end smartphones are not luxury items

• Modern devices are essential for business, education, digital freelancing, and IT work

• High taxes restrict digital growth in Pakistan

• The youth are most affected by unaffordable taxes

Gilani revealed that he personally paid nearly Rs. 500,000 in taxes on just two phones, which he described as “excessive and unfair.”

His campaign has gained support across political lines, including from PPP Chairman Bilawal Bhutto-Zardari and members of multiple parties.

4. Parliamentary Committee to Review Mobile Phone Taxes Next Month

After strong lobbying, the government has assured Gilani that the issue will be taken up in an upcoming meeting of the National Assembly’s Finance Committee.

The committee will:

• Review the current tax structure

• Hear the concerns of consumers and lawmakers

• Invite the FBR chairman to explain existing rules

• Consider reforms that may lower the tax burden

This review marks the first major opportunity in years for a possible reduction in mobile phone taxes in Pakistan.

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5. Understanding the Current FBR Tax Structure

Mobile phone taxes vary depending on the device price and whether registration is done on:

• Passport (cheaper)

• CNIC (more expensive)

Here’s a quick breakdown of current FBR taxes:

Low-Cost Phones

• Fixed duties ranging from Rs. 430 to Rs. 9,580

Phones Above $200

• Fixed charge + 17% sales tax

Phones Above $500

• Passport: Rs. 27,600 + 17% GST

• CNIC: Rs. 37,007 + 17% GST

This makes high-end smartphones significantly more expensive for the average Pakistani consumer.

For example, an Apple reseller confirmed that the PTA tax on an iPhone 17 Pro Max currently stands at:

• Rs. 213,631 on CNIC

This sometimes makes the overall cost of a flagship device double its international price.

6. FBR’s View: High Taxes Boost Local Manufacturing

An anonymous FBR official told media that the tax system has played a major role in boosting local smartphone assembly in Pakistan.

Key points from FBR’s perspective:

• Over 95% of Pakistan’s 34 million phones sold annually are now locally assembled

• Only 700,000 phones were imported last year

• Only 10% of imported phones are iPhones

• Taxes discourage high-end imports but encourage local industry growth

While this may benefit the local economy, it still leaves consumers frustrated—especially those who need premium devices for work and content creation.

7. Committee Discusses Grey-Market Growth and Tax Problems

In the recent committee session, Gilani highlighted several key issues:

• High taxes are pushing people toward the grey market

• Many users now keep separate PTA and non-PTA phones

• PTA taxes cannot be reclaimed or adjusted

• Even older devices such as the six-year-old iPhone 12 have a tax of Rs. 75,000

• Returning Pakistanis are forced to pay taxes on phones they already owned abroad

The meeting ended with the issue postponed, as the FBR chairman was not present.

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PTA Chairman’s Statement After the Meeting

Speaking to journalists, the PTA Chairman reinforced:

• PTA does not impose any taxes

• Government and FBR decide all tax matters

• PTA prefers lower taxes

• Old phones should have reduced duties

He stressed that lowering taxes will help millions of Pakistanis and reduce grey-market activity.

Conclusion

The growing demand for reducing mobile phone taxes in Pakistan reflects a nationwide concern affecting consumers, overseas Pakistanis, and even government officials. With PTA openly advocating lower taxes and lawmakers pushing for reforms, the upcoming parliamentary committee meeting could become a turning point.