Mobile phone tax reform under active consideration: Minister

ISLAMABAD: Tariq Fazal Chaudhry has said that the proposal to abolish the mobile phone tax is currently under consideration, ARY News reported.

Speaking during a Senate session, the federal minister acknowledged that several difficult economic measures had to be taken due to prevailing circumstances, but confirmed that the government is now reviewing the possibility of ending the mobile phone tax imposed through PTA registration and customs duties.

Tariq Fazal Chaudhry said imported mobile phones brought into Pakistan are automatically blocked after a few weeks if they are not registered on the local network. He explained that devices arriving from abroad are restricted once they fail to complete PTA registration requirements, an issue that has repeatedly triggered complaints from overseas Pakistanis.

The minister added that the government is trying to provide more facilities and convenience to Pakistanis living abroad, particularly regarding the mobile phone tax and device registration system that many travelers and expatriates consider expensive and complicated.

Also Read: Mobile phone users in Pakistan get new facility from PTA

The discussion around the mobile phone tax comes just weeks after the Federal Board of Revenue (FBR) significantly increased the import valuation of old and used mobile phones through a new valuation ruling. The previous ruling was withdrawn with immediate effect, making commercially imported used smartphones considerably more expensive.

Under the revised valuation framework, the FBR set new customs values for 62 different mobile phone models. The sharpest increase was recorded for Google Pixel devices, with the valuation of Pixel 5, Pixel 6, and Pixel 6A models rising by as much as 161 to 194 percent.

The increase is expected to raise both import costs and PTA-related mobile phone tax charges on these devices, ultimately transferring the financial burden directly onto consumers already facing high inflation and rising technology prices across the country.

Industry observers believe that if the government moves forward with easing or abolishing the tax, it could provide major relief to overseas Pakistanis and frequent travelers who regularly face high registration charges on personal devices brought into Pakistan.