Lawmakers in Islamabad evaluated mobile phone taxes during a Senate Standing Committee on Cabinet Secretariat meeting, highlighting a communication gap between the Pakistan Telecommunication Authority and the Federal Board of Revenue. Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja reported that local factories now build 93% of mobile devices used in Pakistan.
Because of this high local production rate, these domestic handsets bypass import duties entirely. The minister also pointed out that phones brought into the country by travelers do not represent major commercial imports.
Citizens have expressed anxiety that steep levies could postpone the arrival of next-generation mobile networks. Shaza Fatima pushed back against this worry, assuring the committee that Federal Board of Revenue tariffs have zero impact on rolling out 5G services.
Bringing in 5G-enabled phones is not the main obstacle either. The prime minister intervened to help buyers by ordering the creation of a new framework for purchasing smartphones through simple installment plans.
A significant administrative mismatch remains between state agencies despite these updates. Representatives from the Federal Board of Revenue told the panel that they calculate levies according to each handset model and storage size.
The Pakistan Telecommunication Authority runs a platform that fails to supply the specific model of a device. This software restriction prevents the revenue board from easily recognizing handsets for taxation purposes.
Shaza Fatima noted that only the Tax Policy Office holds the power to change product duties. She recommended calling representatives from the Tax Policy Office to update the committee on their collection methods and effects on buyers.
