Islamabad, Pakistan — November 18, 2025 — Calls are intensifying across Pakistan’s political spectrum to abolish high mobile phone taxes imposed by the Pakistan Telecommunication Authority (PTA). Critics argue the levies are unjust and hinder digital inclusion.
What’s Happening
- MNA Syed Ali Qasim Gilani has urged a review of current PTA and FBR (Federal Board of Revenue) taxes in a letter to the National Assembly’s Standing Committee on Finance. He described the taxes as “unreasonable,” warning that they restrict access to essential digital tools such as smartphones, which he terms vital for education, business, and government services.
- According to him, devices priced above US$ 500 are hit with a 25% sales tax + 18% general sales tax.
- Additionally, both imported and locally assembled phones face registration fees under the DIRBS (Device Identification Registration and Blocking System).
- Gilani argued that such taxation undermines Pakistan’s digital transformation, disproportionately affecting low-income earners and first-time smartphone buyers.
Political Backing
- Several federal ministers have voiced support for Gilani’s call. They echoed his concerns, calling the PTA tax “excessive” and “unjust.”
- Notably, it was reported that even the PTA leadership has expressed disagreements with the current tax structure.
- Earlier this year, the Senate Standing Committee on IT also recommended lowering mobile phone taxes, especially in light of Pakistan’s planned 5G rollout.
But the Tax Isn’t Gone—Yet
- Despite the mounting pressure, PTA and FBR have denied that any decision to remove these taxes has been made.
- In previous fact-checks, PTA clarified that while some tax exemptions exist (for instance, temporary registration for overseas Pakistanis), no blanket waiver has been introduced.
Why It Matters
- High mobile phone taxes are seen as a barrier to digital inclusion, especially for lower-income segments. Gilani says they limit access to essential online services.
- Critics also warn that these taxes may stifle innovation and the growth of Pakistan’s digital economy, particularly as more services move online.
- The issue could reshape telecom policy, with potential implications for future budgets and how Pakistan’s digital infrastructure evolves.
What’s Next
- A key finance committee meeting is scheduled for 3 December 2025, where Qasim Gilani and the FBR Chairman are expected to present their views.
- Whether this leads to real reform or just a political gesture remains to be seen — but for now, millions of mobile phone users in Pakistan are watching closely.
Sources:
- ProPakistani: Ministers voice support against PTA tax
- TechJuice: Smartphone prices too high, government may ease PTA taxes
- Daily Ausaf: MNA pushes for PTA tax relief
- The Northern Post: PTA taxes on mobile phone should end, says Qasim Gilani
- Geo TV: Fact-check denying waiver of PTA tax
- Bol News: Senate Committee urges PTA to lower mobile taxes amid 5G plans
