ISLAMABAD – No progress has been made on the highly anticipated reduction of taxes on imported mobile phones. Sources said despite repeated demands, the Ministry of IT and the Pakistan Telecommunication Authority (PTA) have failed to secure any relief for the sector.
The matter has become particularly critical as 5G spectrum auction is around the corner. Telecom operators have been demanding a cut in mobile phone taxes to address the shortage of 5G-enabled devices in the market. Although the Ministry of IT and PTA had recommended tax relief to support the rollout, the Federal Board of Revenue (FBR) has outright rejected the proposal for immediate action.
FBR maintains that slashing taxes now would undermine overall tax collection targets, leaving operators in a lurch. Notably, the 5G spectrum auction policy directive also made no clear guarantees regarding the taxation of imported mobile phones, further fueling industry concerns.
According to sources, while FBR remains firm against immediate reductions, it is expected to review the mobile phone tax structure in the next federal budget. For now, both telecom operators and consumers are left waiting, with the cost of imported mobile phones showing no signs of relief.
The development shows growing tensions between Pakistan’s revenue authorities and the telecom sector, as the country prepares for a high-stakes expansion of 5G services.
5G is Coming to Pakistan: Which Cities Will Get Service First?
