FBR and PTA Mobile Taxes: Fair for Everyday Pakistanis?

In Pakistan, when we buy phones from abroad, we face a big question: Are the taxes set by the Federal Board of Revenue (FBR) and Pakistan Telecommunication Authority (PTA) fair? Many say it’s not right, especially for those who bring in just one phone for themselves and not to sell.

Simple Phones and Big Taxes: Is It Fair?

The FBR and PTA ask for taxes on all phones coming into Pakistan. To use imported phones in Pakistan with a local SIM, you need to PTA approve it for a tax amount that is generated based on the value of the phone.

That’s okay for businesses that bring lots of phones to sell and make money. But what about us, the regular people who save up to buy a good phone for our use? It doesn’t seem right to pay the same high taxes.

Think of it this way: When you have a big truck that carries lots of goods, you expect to pay more for road use than someone who drives a small car, right? It’s the same with phones.

Apart from that, the value that FBR determines for the phones is ridiculous. A 5-year-old phone will still have over 60,000 PTA Tax that needs to be paid. Is that fair?

How People Try to Avoid High Taxes

Because these taxes are so high, some people find other ways to use their phones without paying so much. They might use a special trick, called a CPID patch, to make their Android flagship phone look like a featured phone with 4G in the system.

Or they might carry two phones: one cheap phone with a Wi-Fi hotspot that they use for calls and data, which is PTA approved, and their fancy phone just for other stuff.  It’s a lot of trouble, carrying two phones, but they do it to save money.

A Better Way for Taxes

The FBR and PTA need to think about a better way. If they made taxes lower for people who just bring one phone for themselves, more people would follow the rules.

They must reduce the taxes to what they were before. Why? If they think logically then they are going to make more tax income out of this strategy.

My Theory!

High taxes only mean that FBR wants to generate more mobile tax revenue out of it for the government. We respect that, and every Pakistani would love to help this country out of the financial crisis. But 99% of Pakistani’s buying power isn’t enough to pay 170,000 PKR only in tax just to use their dream phone that they saved money for a year. No?

Here’s my theory that if applied by FBR again, would make them more revenue in 2024 compared to last year.

Let’s say 10 people import Samsung S23 Ultra, at the current PTA Tax i.e. PKR 164,000, at most only 1 person would be unwise enough to pay that 164,000 just to run local sims in that phone. On the other hand, if the tax were let’s say PKR 40,000. I guarantee, 8 out of 10 would PTA approve that phone.

Basic Income calculation:
1 x 164,000 = PKR 164,000 (tax might be generated)
8 x 40,000 = PKR 320,000 (tax might be generated).

Based on the theory above, I think PTA being the regulator must guide FBR to consider doing that to see a drastic increase in the tax income that they generate this year.

This would be fair, would make life easier for everyone and ultimately generate double revenue.

You must learn about the common scams currently taking place in the market and how to avoid them while registering your phones with PTA. PhoneWorld’s PTA Taxes Portal should be your go-to stop to know the accurate taxes of all the phones, tax updates, and guides.

Conclusion

It’s time for the FBR and PTA to look at their mobile tax policy again. They should make sure it’s fair for all Pakistanis, not just the big businesses. We all want to use good phones without paying more than we should.