ISLAMABAD: Uncertainty surrounds the potential reduction of taxes on mobilephones in Pakistan following a recent Senate Standing Committee sessionwhere the chairperson directly inquired whether duties were being lowered.The Pakistan Telecommunication Authority (PTA) chairman provided keyclarifications, emphasizing that his organization does not impose orcollect any taxes on mobile devices. This revelation has sparked reneweddebate on affordability, as consumers face high costs often perceived asPTA levies, while a dedicated subcommittee examines possible reliefmeasures.
The PTA chairman explicitly stated during the meeting that the authoritybears no responsibility for taxation on mobile phones, adding that even inhis position, he lacks knowledge of the exact tax amounts applied toindividual devices. He explained that all duties fall under the FederalBoard of Revenue (FBR), which handles import duties, registration fees, andrelated charges. This distinction is crucial, as public frustrationfrequently targets the PTA due to its role in device registration and IMEIblocking for non-compliant phones, creating widespread misconceptions aboutthe source of high costs.
A subcommittee, led by prominent figure Naveed Qamar, was established atthe request of a National Assembly member who highlighted that taxes couldreach up to 66 percent of a phone’s price. The subcommittee is activelyworking on proposals to reduce these burdens, aiming to make smartphonesmore accessible in a market where they have become essential for education,business, and communication. However, the PTA chairman noted that hisauthority was not included in this subcommittee, limiting its directinvolvement in the tax rationalization process despite its regulatoryoversight in telecom.
Recent discussions in parliamentary committees, including the NationalAssembly Standing Committee on Finance, have intensified calls for taxrelief, particularly ahead of the planned 5G rollout in 2026. Lawmakershave criticized the current regime as excessive, with examples of taxesexceeding 60 percent on high-value devices. The FBR has been directed toprepare options for rationalization by March 2026, to be considered in theupcoming federal budget, balancing revenue needs with consumeraffordability and local manufacturing growth.
Adding to the telecom sector’s financial discourse, the PTA chairmanrevealed that the authority received Rs 2 billion from a company lastmonth, which was promptly transferred to the Ministry of InformationTechnology. Meanwhile, the Chief Executive Officer of the Universal ServiceFund (USF) disclosed that Rs 60 billion accumulated in the fund during2013-14 but remained largely unspent, with the federal government laterwithdrawing the amount and still owing Rs 42 billion. This longstandingissue underscores broader challenges in telecom fund management andutilization for underserved areas.
These developments highlight the complex interplay between regulatorybodies, parliamentary oversight, and fiscal policy in addressing mobilephone affordability in Pakistan, as stakeholders await concrete proposalsamid rising digital demands.
Read Top Stories
Source:https://propakistani.pk/2026/01/12/even-the-pta-chairman-doesnt-know-how-much-tax-you-pay-on-your-phone/
Tags: Pakistan, PTA, FBR, Naveed Qamar, Universal Service Fund
ogimageimage-name
