PTA Calls for Lower Tax on Mobile Phones

Pakistan Telecommunication Authority (PTA) has expressed support for reducing taxes imposed on mobile phones brought into the country from abroad. According to PTA’s Director General Licensing, Brigadier (Retd) Amir Shahzad, the public’s long-standing demand for tax relief aligns with the authority’s own stance, as the high taxation has affected all stakeholders, including consumers and industry officials. Speaking at an AI Conference, the DG Licensing clarified that the power to collect taxes on mobile phones does not rest with the PTA. He said the Federal Board of Revenue (FBR) is solely responsible for levying and collecting these duties. He reiterated that the authority has repeatedly clarified this misconception, as many citizens mistakenly believe PTA imposes or receives the mobile phone tax. Brigadier (Retd) Amir Shahzad added that PTA officials are equally affected by mobile phone taxes and do not receive any free devices or exemptions. He said officials purchase mobile phones like ordinary citizens and pay all applicable duties and taxes without any privilege or concession. Member National Assembly Syed Ali Qasim Gilani had earlier raised serious concerns over the extraordinarily high taxes on mobile phones. He wrote to the Standing Committee on Finance, urging an immediate review of the current taxation mechanism. According to him, heavy import duties, sales taxes and registration fees have restricted citizens’ access to digital technology. He highlighted that phones valued above USD 500 are subject to 25 percent sales tax and 18 percent general sales tax, which he termed a significant barrier to technological advancement. The demand for tax reduction has also been echoed widely by the public, including overseas Pakistanis, who have long complained that excessive taxes make it difficult to register and use mobile phones brought from abroad.