The Pakistan Telecommunication Authority (PTA) has backed a balanced approach to mobile phone duties and taxes.
According to the authority, suitable reforms could make smartphones more affordable for consumers across Pakistan.
At the same time, the PTA wants taxation changes to protect the country’s growing local mobile manufacturing industry.
The authority presented its position in a response prepared for the Senate Standing Committee on Cabinet Secretariat.
PTA Calls for Balanced Mobile Tax Reforms
The PTA said Pakistan’s mobile taxation system needs improvement in line with the government’s digital transformation agenda.
According to the authority, carefully structured reforms could help more people access smartphones and digital services.
As a result, affordable devices could contribute to greater digital inclusion across different income groups.
However, the PTA stressed that tax reforms should balance consumer affordability with the interests of local manufacturers.
The authority also clarified its role in the taxation process.
While technical evaluation of mobile phones falls within the PTA’s mandate, other responsibilities remain with the Federal Board of Revenue.
The FBR handles the imposition, assessment and collection of duties and taxes on mobile phones.
Lower Smartphone Prices Could Expand Digital Access
The PTA believes that lower smartphone prices could improve access among low- and middle-income consumers.
More affordable devices could also encourage wider adoption of mobile broadband services.
Consequently, greater smartphone access could support broader participation in digital services.
The authority linked these potential benefits with the government’s wider digital inclusion objectives.
However, it stressed that any reduction in taxes should follow a carefully designed framework.
PTA Highlights Illegal Imports and IMEI Tampering
The authority also pointed to the potential impact of taxation reforms on the illegal mobile phone market.
According to the PTA, a balanced tax structure could help curb illegal imports and unregistered mobile phones.
It could also discourage practices involving IMEI tampering.
The authority said reducing the price difference between legal and unauthorised devices could influence consumer choices.
If legal devices become more competitive in price, consumers may have greater incentives to purchase phones through authorised markets.
Therefore, taxation reforms could address affordability while also supporting compliance with existing regulations.
Local Mobile Industry Remains a Key Concern
Despite supporting more affordable smartphones, the PTA does not want tax relief to weaken local mobile assembly.
The authority stressed that any reforms should protect the country’s domestic manufacturing and assembly industry.
It also warned against measures that could encourage an unnecessary increase in completely built-up (CBU) imports.
CBU devices are imported as fully assembled units rather than being assembled locally.
Therefore, the PTA wants any changes to maintain a reasonable balance between imported devices and local production.
What the Proposed Approach Could Mean for Consumers
A more balanced mobile taxation system could potentially reduce the cost of smartphones for Pakistani consumers.
At the same time, the approach could support wider mobile broadband adoption and digital participation.
However, the PTA’s position does not amount to a specific announcement of immediate tax reductions.
Instead, the authority has called for reforms that consider consumer affordability, digital inclusion and local manufacturing together.
The final structure of any taxation changes would remain linked to the government’s policy decisions and the FBR’s responsibilities.
For consumers, the key question will therefore be whether future reforms can narrow smartphone price differences.
Meanwhile, the PTA’s position signals support for a taxation framework that encourages legal purchases without undermining Pakistan’s local mobile industry.
