The National Assembly Standing Committee on Finance and Revenue has directed the Federal Board of Revenue and Pakistan Telecommunication Authority to review mobile phone taxes Pakistan imposes, citing unaffordable rates that burden consumers. The panel seeks a report by March 2026 to inform budget reforms.
NA Committee Demands Action on Mobile Phone Taxes Pakistan
The National Assembly committee convened in Islamabad on Tuesday, to address escalating concerns over mobile phone taxes Pakistan levies on imports and registrations. Chaired by MNA Syed Naveed Qamar, the body unanimously called for a comprehensive assessment of current levies, including those under personal baggage and device registration schemes.
MNA Qamar expressed strong disapproval of the classification of smartphones as luxury items. “These institutions have wrongly classified mobile phones as luxury items,” he stated during the session. He urged the FBR and PTA to evaluate policy options, economic impacts, and international benchmarks for revisions.
The directive targets smartphone import taxes Pakistan applies, which can reach up to 55 per cent on high-end devices. FBR officials reported collecting PKR 82 billion in revenue from mobile phone taxes Pakistan-wide in the fiscal year 2024-25. Of this, PKR 18 billion came from premium models, representing 23 per cent of the total.
MNA Qasim Gilani highlighted the double taxation issue. Consumers face repeated levies if devices are lost or stolen, he noted. “People are using smartphones for content creation, video sharing, and e-commerce,” Gilani said, emphasising their role in livelihoods. He cited examples: a tax of PKR 35,000 on older iPhone 6 models and PKR 100,000 on iPhone 12 imports.
MNA Sharmila Faruqi pointed to the latest iPhone, priced at PKR 350,000, with an additional PKR 190,000 in taxes. “This makes devices out of reach for ordinary citizens,” she remarked. MNA Mirza Ikhtiar Baig added that a clear taxation mechanism is vital, rejecting the view that smartphones serve only the wealthy.
PTA Chairman Major General (R) Hafeez ur Rehman clarified the agency’s role. Only six per cent of high-end phones enter via imports, he informed the committee, with most now locally assembled. PTA does not impose taxes; it enforces registration through the Device Identification, Registration and Blocking System (DIRBS). “All duties and charges are set by FBR and the federal government,” Rehman stated in a recent PTA clarification.
FBR Chairman Rashid Mahmood Langrial defended the regime, noting overall declines in smartphone prices except for select brands. He affirmed the FBR’s willingness to adjust if recommended by the Ministry of Finance’s Tax Policy Office.
The committee proposed shifting smartphones to the Eighth Schedule for concessions, distinct from the Ninth Schedule applied to telecom services. Tax officials explained levies base on device value, not models, and noted domestic production now covers 95 per cent of handsets, excluding Apple products.
PTA Tax Review Pakistan: Clarifying Misconceptions
PTA tax review Pakistan efforts gained momentum as the authority issued a press release urging consumers to pay applicable FBR taxes for device registration. Dated January 21, 2025, the statement dispelled myths about a “PTA tax.” “PTA only provides technical support via DIRBS without charges,” it read. Applicants must visit the FBR site for duty details.
This aligns with the NA committee’s push for PTA tax review Pakistan to ease burdens on overseas Pakistanis and locals. The review examines how high rates fuel smuggling and deter legal imports. PTA’s annual report for 2024, released December 16, 2024, underscores the need for balanced policies to boost telecom penetration, currently at 75 per cent.
In a separate NA press release from December 6, 2025, the Standing Committee on Finance reiterated oversight on financial legislation, including mobile phone taxes Pakistan. It stressed that “mobile phones can no longer be treated as luxury goods,” echoing the August meeting’s sentiments.
Impact of Smartphone Import Taxes Pakistan on Consumers
Smartphone import taxes Pakistan drive up costs, affecting 120 million mobile subscribers. Devices above USD 500 attract PKR 27,600 plus 17 per cent sales tax for passport registrations, or PKR 37,007 plus tax for CNIC. This regime, introduced to curb smuggling, has instead priced out low-income users.
The NA committee mobile taxes discussion revealed stark disparities. High-end imports contribute disproportionately to revenue, yet everyday models bear similar burdens. FBR data shows PKR 82 billion collected, but critics argue it hampers digital inclusion in South Asia’s most populous nation after India.
South Asia’s mobile ecosystem relies on affordable access for economic growth. Pakistan’s 5G licences, slated for February-March 2026, risk low adoption if taxes persist. PTA Chairman Rehman noted local manufacturing’s rise, from 10 per cent in 2018 to 95 per cent today, yet import duties stifle competition.
MNA Gilani’s advocacy, including a deferred resolution, prompted the FBR’s openness to cuts. “If the Tax Policy Office recommends, FBR will rationalise,” an official echoed in committee proceedings. This could slash costs by 20-30 per cent, per analyst estimates.
NA Committee Mobile Taxes: Policy Shifts Proposed
NA committee mobile taxes reforms target the Eighth Schedule inclusion for relief. Currently, the Ninth Schedule exempts telecom inputs but not end-user devices. Officials clarified: “Levies apply on price, promoting local assembly.”
The panel’s report, due March 2026, will analyse global models. In India, import duties hover at 20 per cent; Bangladesh at 15 per cent. Pakistan’s 55 per cent peak exceeds regional norms, the committee found.
Consumer groups welcomed the move. “This addresses e-commerce barriers,” said a representative from the Pakistan Software Houses Association. Yet, PTA opposed zero duties, warning of harm to local firms employing 50,000.
Background: Evolution of Mobile Phone Taxes Pakistan
Mobile phone taxes Pakistan trace to 2018’s DIRBS launch, aimed at grey market control. Initial rates: PKR 800 for budget phones, escalating to PKR 200,000 for flagships. By 2024, hikes followed IMF commitments for revenue.
FBR’s 2024-25 collections hit PKR 82 billion, up 15 per cent year-on-year. PTA’s 2024 report highlights 1.2 billion devices registered, blocking 10 million non-compliant ones. Despite gains, affordability lags: average smartphone costs PKR 50,000, double the regional mean.
Parliamentary scrutiny intensified post-2024 elections. MNA Gilani’s November 2025 X post flagged overseas Pakistanis’ plight, prompting the August review.
What’s Next: Roadmap for Relief
The FBR and PTA must submit the report by March 2026, ahead of the June budget. Expected outcomes include tiered taxes: lower for sub-PKR 50,000 devices. PTA anticipates 5G rollout acceleration, projecting 20 million users by 2027 if costs drop.
Stakeholders urge swift action. “Reforms could add PKR 100 billion to GDP via digital jobs,” per a World Bank study. The NA committee mobile taxes initiative signals broader fiscal equity in Pakistan.
Mobile phone taxes Pakistan remain a flashpoint, but the review promises consumer-centric change.
Published in SouthAsianDesk, December 10th, 2025
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