PTA calls for reduction in taxes on imported mobile phones

The Pakistan Telecommunication Authority (PTA) has advised the government to reduce taxes on imported mobile phones, saying that duties on older models should be significantly lower.

The recommendation was made during a meeting of the National Assembly’s Standing Committee on Finance, chaired by Syed Naveed Qamar.

The committee deferred its discussion on mobile phone taxation and decided to summon the Chairman of the Federal Board of Revenue (FBR) at the next sitting.

Committee member Ali Qasim Gilani told the meeting that problems relating to phones brought from abroad involved both the PTA and the FBR. He said the issue affected a large number of Pakistanis, not just overseas travellers.

“This is not only a matter for overseas Pakistanis. Millions of people here are impacted,” he said.

Gilani added that Pakistanis returning from abroad were being taxed on their personal handsets. “A Pakistani brings his own phone back home and it is taxed again,” he said. He warned that the heavy taxes on imported devices had pushed many consumers towards unregistered phones. “People have started keeping two phones — one PTA-approved and the other non-PTA,” he remarked.

He criticised the number and scale of duties, noting: “There are so many taxes on mobile phones, and while others can be reclaimed, the PTA tax cannot.” Referring to specific devices, he said: “The iPhone 12 is six years old and the tax on it is still Rs75,000.”

Chairman Naveed Qamar observed that tax policy was the domain of the FBR, noting: “It is clear that this matter relates to the FBR, and the Chairman FBR is not present today.”

Responding to the concerns, PTA Chairman Major General (retd) Hafeez-ur-Rehman clarified that the authority does not impose any levies. “All taxes are imposed by the FBR. The PTA does not impose taxes,” he told the committee. He said the authority supported easing the burden on consumers, adding: “We want there to be fewer taxes.”