ISLAMABAD: The National Assembly Standing Committee on Finance has recommended a potential reduction in mobile phone taxes, commonly referred to as PTA tax, as part of discussions for the upcoming Budget 2026-27. The proposal aims to ease the financial burden on consumers and promote the use of modern technology across Pakistan.
During a key meeting, chaired by Sayed Naveed Qamar, lawmakers reviewed the existing taxation structure on imported and locally assembled mobile phones. Officials from the Federal Board of Revenue (FBR), led by Chairman Rashid Mahmood Langrial, briefed the committee on current tax rates and revenue collection.
According to the briefing, imported smartphones priced above $500 are currently subject to a heavy tax burden of around Rs. 76,000, translating to approximately 54 percent of the device’s value. Phones in the $700 to $750 range face even higher taxation, reaching nearly 55 percent. These high duties have raised concerns among consumers and industry stakeholders.
Officials explained that while imported mobile phones are taxed at over 50 percent, locally manufactured or assembled devices benefit from a significantly lower tax rate of around 25 percent. This policy is aimed at encouraging local manufacturing, but it has also created price disparities in the market.
The committee was further informed that an 18 percent general sales tax (GST) is currently imposed on mobile phones, along with additional income tax and a withholding tax of approximately Rs. 11,500 on high-end devices. FBR officials clarified that there is currently no immediate scope to reduce GST or withholding tax rates.
Lawmakers stressed the importance of making smartphones more affordable to support digital growth and economic development. Chairman Naveed Qamar highlighted that technology adoption plays a key role in boosting productivity and connectivity. He argued that the imposition of multiple taxes on mobile phones creates unnecessary financial pressure on consumers.
The committee recommended that the government introduce a clear and transparent mobile taxation policy in the upcoming federal budget. It emphasized that rationalizing PTA tax could increase smartphone penetration and support Pakistan’s digital economy goals.
The final decision on tax reductions is expected during the Budget 2026-27 announcement, where the government will outline its broader fiscal strategy.
