PTA Supports Lower Mobile Taxes to Improve Smartphone Affordability

The Pakistan Telecommunication Authority (PTA) has supported the rationalization of duties and taxes on mobile devices, saying a more balanced tax structure could help make smartphones more affordable while protecting Pakistan’s local mobile manufacturing industry.

In a response prepared for the Senate Standing Committee on Cabinet Secretariat, the PTA said it favors tax rationalization in line with the government’s broader digital transformation agenda.

The authority, however, clarified that its statutory mandate is limited to the technical evaluation of mobile devices. Matters relating to the imposition, assessment, collection, and administration of duties and taxes fall under the jurisdiction of the Federal Board of Revenue (FBR).

Despite this, the PTA said the existing taxation framework should be reviewed in a way that improves smartphone affordability for consumers without undermining local manufacturing.

Balancing Affordability With Local Manufacturing

According to the PTA, any revised tax structure should strike a balance between lower smartphone prices and the sustainability of Pakistan’s local mobile phone manufacturing sector, particularly in comparison with completely built-up (CBU) imports.

The regulator said a more rationalized taxation regime could also help discourage illegal imports and other illicit practices in the handset market.

These include International Mobile Equipment Identity (IMEI) tampering, which remains a concern as authorities continue efforts to curb the use of illegally imported and unregistered devices.

By reducing the price gap between legally imported or locally manufactured smartphones and devices entering through unauthorized channels, the PTA believes the government could improve affordability while strengthening compliance.

The PTA’s position was included in a briefing prepared for a meeting of the Senate Standing Committee on Cabinet Secretariat scheduled for August 21.

The committee was expected to receive briefings from the PTA and Pakistan Customs authorities on the valuation of imported mobile phones, including the revaluation of older models and rationalization of related duties and taxes.

Smartphone affordability remains a key challenge in Pakistan, where device prices can directly affect mobile broadband adoption and access to digital services.

Lower taxes could help bring more consumers into the smartphone market, particularly in lower- and middle-income segments, while supporting the government’s efforts to expand digital inclusion.

At the same time, the PTA has emphasized that any tax relief should be structured carefully so that it does not weaken local assembly or encourage a surge in CBU imports.

The regulator’s position adds support to calls for a more balanced mobile phone tax regime that lowers costs for consumers while sustaining domestic manufacturing and discouraging illegal market activity.

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