Efforts to reduce taxes on imported mobile phones have stalled, as the Federal Board of Revenue (FBR) has refused to grant immediate relief, citing concerns over revenue targets. Despite recommendations from the Ministry of IT and the Pakistan Telecommunication Authority (PTA), the issue remains unresolved, leaving telecom operators’ demands unmet.
According to local media reports, discussions on lowering taxes on imported mobile phones have yet to yield any results. In Islamabad, the Ministry of IT and the Pakistan Telecommunication Authority (PTA) have failed to meet a key demand of telecom operators, while the 5G spectrum auction policy directive also does not include any clear assurance regarding mobile phone taxes.
Reports said telecom operators are calling for a reduction in taxes to address the shortage of 5G-compatible mobile phones, a move that had also been recommended by the Ministry of IT and the PTA. However, the FBR has turned down the proposal to immediately cut taxes on imported mobile phones.
The FBR maintains that any reduction in taxes would adversely affect overall revenue collection targets. Sources added that the tax authority remains firm on reviewing mobile phone taxes in the upcoming budget.
