New PTA charges plan: Will mobile phones become more affordable?
The National Assembly Standing Committee on Finance and Revenue reviewed taxes on imported and locally assembled mobile phones during a meeting chaired by former finance minister Syed Naveed Qamar. Members called for a new payment mechanism to reduce the financial burden on consumers.
Officials from the Federal Board of Revenue briefed lawmakers on tax rates for different categories of mobile phones. They explained that tax rates increase as the value of imported smartphones rises.
According to the FBR, mobile phones priced up to $30 face an effective tax rate of 25%. Devices priced between $31 and $100 are subject to a 36% tax rate.
Imported phones worth between $101 and $200 carry an effective tax rate of 40%. Smartphones priced from $201 to $350 are taxed at around 38%.
For devices valued between $351 and $500, the effective tax rate stands at 40%. Smartphones costing more than $500 attract taxes of around 41%.
The committee was informed that mobile phone taxes currently range from Rs1,500 to Rs141,500 depending on the device category and value. FBR officials said the average effective tax rate across imported mobile phone categories is about 39.6%.
Officials also revealed that nearly 44% of imported mobile phones fall within the $31 to $100 price range. This category carries a relatively lower tax burden compared to premium devices.
Also read: Smartphone prices may drop as FBR ends regulatory duty on mobiles
Committee members expressed concern over the growing number of non-PTA-approved phones in the market. They suggested introducing an installment-based system to make tax payments easier for consumers.
Lawmakers said installment facilities are common around the world, even for small purchases. They proposed that the FBR and the Pakistan Telecommunication Authority jointly develop a workable plan for mobile tax payments.
Syed Naveed Qamar directed the FBR to coordinate with PTA and prepare a proposal for the installment mechanism. The plan aims to make smartphones more accessible while improving compliance with registration rules.
The proposal comes as concerns continue to grow over high smartphone taxes in Pakistan. Heavy duties and regulatory charges have increased device prices and encouraged alternative buying methods.
An installment-based tax system could make smartphones more affordable for many people. It may also encourage users to register their devices legally.
However, the success of the plan will depend on how simple and flexible the payment process becomes. Clear coordination between the FBR and PTA will be necessary to deliver real relief to consumers.
