ISLAMABAD – Pakistanis are bearing brunt of sky high prices of flagship smartphones as taxes continue to bite, and now lawmaker is demanding urgent action on the dillemma.
Kasim Gilani, son of former PM and current Senate Chairman Yousaf Raza Gilani and a member of the National Assembly, has written to the parliamentary Standing Committee on Finance urging a review of the Pakistan Telecommunication Authority (PTA) and Federal Board of Revenue (FBR) taxes on mobile phones.
According to his letter, the newly launched Apple iPhone 17 series faces a staggering PTA tax of approximately Rs213,631, while its base model is taxed at 154,293. These heavy fees are pushing many consumers toward unregistered devices, as the cost of legal registration is becoming prohibitively high.
In his letter, Kasim shared break down into the current tax regime, the concerns, and the requests for review.
High Sales Tax: Mobile phones imported as Completely Built Up (CBU) units are subject to high sales tax:
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- 25% for devices valued over US $500.
- 18% for devices valued at or below US $500.
Local/SKD Tax: Locally manufactured or imported CKD/SKD (semi/knocked-down) phones are subject to 18% tax.
Tax Authority: All duties and taxes on device registration/import are levied by the Federal Board of Revenue (FBR), not the PTA (despite common reference to “PTA tax”).
Registration Deadline: Devices must be registered via DIRBS and the tax/levy paid within 60 days of first SIM usage, or the device is blocked.
Increased Cost & Affordability: High tax rates significantly increase the cost of mobile phones, making them less affordable for youth, low-income, and rural populations.
Barrier to Digital Pakistan: High cost acts as a barrier to achieving digital inclusion, especially by limiting access to digital learning, e-services, and entrepreneurial activity.
Revenue Leakage Risk: The percentage-based tax structure may incentivize grey-market imports and unregistered devices, leading to revenue leakages and regulatory issues.
Slowing Growth: High taxes on end-users hamper the uptake of newer technologies and slow the growth of the mobile-based digital ecosystem.
Requests to the Committee
Review the tax rates and consider a more progressive or sliding scale (e.g., lower rates for rural and entry-level devices).
Explore providing tax relief or incentives for devices used in educational, rural, or low-income segments.
Ensure better alignment between technology-policy goals (digital inclusion, connectivity) and tax policy.
Make the tax collection and registration process (DIRBS) more transparent and consumer-friendly.
He said , mobile phones are no longer a luxury and they are essential for education, business, government services, and financial transactions. He highlighted that import duties, sales taxes, and registration fees imposed by the FBR and PTA are beyond the reach of most ordinary citizens. Phones imported at over 500 USD are subject to a 25% sales tax in addition to 18% General Sales Tax, along with extra fees on both local and imported models.
He called on the government to bring balance to the tax system, allowing the public access to affordable smartphones while ensuring the state still collects revenue. He urged the committee to take immediate action to provide relief to consumers and boost digital growth across the country.
Know about PTA tax calculator 2025 for mobile phones registration
