By Staff Reporter
ISLAMABAD: Pakistan may lower the steep import duties on smartphones that have driven up prices for millions of users, after a lawmaker said the Federal Board of Revenue wouldn’t object to a reduction if recommended by the finance ministry’s tax policy unit.
The move signals a potential shift in policy amid growing complaints that the levies, including customs duties, sales tax and registration fees, inflate device costs by hundreds of dollars, making high-end models far more expensive than their international retail prices. Officials have defended the charges as a way to control imports and limit gray-market trading, but detractors argue they hinder digital access, online education and e-commerce for average citizens.
Kasim Gilani, a member of parliament from the Pakistan Peoples Party, has been pushing for changes to the tax regime in recent weeks. On Tuesday, he posted on X: “Chairman FBR has stated that if the Tax Policy Office of the Finance Ministry recommends a reduction in PTA tax, FBR will have no objection to rationalising the tax percentage. A major development for smartphone users across Pakistan.”
During a meeting in Islamabad, Gilani pressed the point further. “There’s too much tax on smartphones; they already cost too much and are beyond the common man’s reach,” he said, noting that consumers are even required to pay taxes again if their devices are stolen.
FBR Chairman Rashid Langrial responded that prices for several major brands have already declined, while conceding issues with valuation practices. “If the FBR rate is higher than the market rate, it will be reduced,” he told the committee. Tax officials clarified that duties are based on the phone’s price rather than the specific model. The FBR plans to submit a report on the smartphone tax mechanism in March, with officials noting that mobile phones generated Rs82 billion in revenue during the last fiscal year.
Syed Naveed Qamar, chairman of the parliamentary committee overseeing the discussion, emphasised the need for action. “Work is needed to reduce taxes on smartphones,” he said. Another committee member proposed shifting mobile phones to the Eighth Schedule of tax regulations to lower costs for consumers.
Pakistan Telecommunication Authority Chairman Major-General Hafeezur Rehman added context on import volumes, saying only 6% of expensive smartphones are imported, with the remainder assembled locally. He also disclosed that a 5G license would be issued between February and March next year.
The charges, commonly known as the PTA tax after the telecom regulator that administers device registration, encompass a range of federal fees on imported phones, especially those brought in by travelers or expatriates returning home. Users activating foreign-bought devices in Pakistan face additional registration costs that further elevate prices.
Demands for reform have intensified in recent months as part of broader conversations on digital inclusion. With more than 60% of Pakistan’s population under age 30, smartphones have become essential for mobile banking, remote learning and participation in the gig economy. Easing the duties could broaden access to internet-connected devices, though it might dent short-term revenue unless offset by increased compliance or phased implementation.
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