The Pakistan Telecommunication Authority (PTA) has supported a balanced approach to duties and taxes on mobile phones, saying appropriate reforms could make smartphones more affordable for consumers while protecting the country’s local mobile manufacturing industry.
In a response prepared for the Senate Standing Committee on Cabinet Secretariat, the PTA said the taxation system needs to be improved in line with the government’s digital transformation agenda.
Such reforms could expand public access to digital services and promote greater digital inclusion.
The PTA clarified that while technical evaluation of mobile phones falls within its mandate, the imposition, assessment and collection of duties and taxes are the responsibility of the Federal Board of Revenue (FBR).
According to the authority, any new taxation policy should strike a balance between making affordable smartphones available to consumers and protecting local manufacturers.
The PTA also noted that a balanced tax structure could help curb illegal imports, unregistered mobile phones and IMEI tampering.
Narrowing the price gap between legally imported or locally manufactured phones and devices available through unauthorised channels could encourage consumers to purchase phones through legal markets.
The authority said lower smartphone prices could improve access among low- and middle-income groups, increase mobile broadband adoption and support the government’s digital inclusion efforts.
However, the PTA stressed that any tax relief should be structured carefully so that it does not undermine local assembly or lead to an unnecessary increase in completely built-up (CBU) imports.
