ISLAMABAD – News of a possible reduction in taxes on imported mobile phones sparked frenzy among smartphone users across Pakistan, many of whom have long complained about the high cost of registering devices with Pakistan Telecommunication Authority (PTA). However, despite claims circulating on social media, there has been no official decision to abolish PTA-related taxes or duties altogether.
The discussion started after PPP MNA Qasim Gilani announced that regulatory duty on imported mobile phones had been removed. The announcement quickly gained attention, with many consumers hoping it would lead to lower overall costs for importing and registering smartphones. But lawmakers involved in the ongoing budget review highlighted small details.
Members of the National Assembly’s Standing Committee on Finance and Revenue told media that discussions focused on reducing regulatory duty for certain categories of mobile phones rather than eliminating it completely. “Relief has been discussed, but there has been no proposal to completely end the duty,” a committee member familiar with the deliberations said.
Pakistani lawmakers are considering lowering regulatory duty on mobile phones priced between $201 and $350, a category that includes many of the mid-range smartphones popular among Pakistani consumers. The proposal is expected to be included in the committee’s recommendations on the federal budget for the upcoming fiscal year.
If approved, the move could provide some relief to consumers who often find that PTA registration charges significantly increase the final cost of imported devices. For now, however, all existing taxes remain in place. For many Pakistanis returning from abroad or purchasing phones through overseas relatives, PTA registration fees have become an unavoidable expense.
Under Pakistan’s DIRBS (Device Identification, Registration and Blocking System), imported mobile phones must be registered before they can operate with local SIM cards. Registration requires payment of various duties and taxes collected through the Federal Board of Revenue (FBR).
At present, phones valued between $201 and $350 attract a fixed duty of Rs14,661 along with 17 percent sales tax, while more expensive devices face even higher charges. For premium smartphones costing above $500, taxes can exceed Rs37,000 plus sales tax, often adding tens of thousands of rupees to the overall price.
Installment plan under consideration
Alongside the proposed reduction in duties, another measure under discussion could make PTA payments easier for consumers. Qasim Gilani has said the Finance Committee has agreed to include a provision in the Finance Bill 2026-27 allowing the FBR to develop a framework for installment-based PTA tax payments.
If implemented, consumers would be able to spread registration costs over time instead of paying the full amount upfront, a move that could particularly benefit younger buyers and middle-income households.
Pakistan’s taxation framework for imported mobile phones has evolved significantly over the past decade. Tax expert Dr. Ikram-ul-Haq notes that a modest regulatory duty was first introduced during the PML-N government, when imported phones were charged a flat Rs200 duty per device.
The current slab-based system was introduced in 2019 following the launch of PTA’s DIRBS mechanism. Since then, tax rates have been revised several times, including a major increase in the 2021-22 budget.
In April 2023, amid easing import restrictions and economic pressures, the government reduced regulatory duties by nearly 50 percent. The broader objective behind these taxes has been to encourage local manufacturing and assembly of mobile phones in Pakistan. Experts remain divided.
While Pakistan has seen growth in local assembly operations under the Mobile Device Manufacturing Policy, some analysts argue the sector has not expanded as rapidly as policymakers had hoped.
In reality, regulatory duty delivered limited results in developing a competitive domestic manufacturing industry as Tax analyst points to high corporate taxation and policy uncertainty as major obstacles to investment.
The proposed changes are expected to form part of the Finance Committee’s recommendations on the federal budget. Any reduction in duties will only take effect after approval by parliament and subsequent government notification. For now, consumers hoping for the complete removal of PTA taxes may need to temper expectations.
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