PTA supports rationalisation of mobile device taxes to boost smartphone affordability

The Pakistan Telecommunication Authority (PTA) has expressed support for rationalising duties and taxes on mobile devices to increase the affordability of smartphones, while emphasizing the importance of safeguarding local mobile phone manufacturing and curbing illegal imports. The official PTA document states that its legal responsibility is confined to the technical assessment of mobile devices, with all matters pertaining to the imposition, assessment, collection, and administration of duties and taxes falling solely under the purview of the Federal Board of Revenue (FBR).

Nevertheless, the telecom regulator has indicated its backing for the rationalisation of duties and taxes on mobile devices, in line with the government's digital transformation strategy. Importantly, any proposed taxation system should seek a balance between making smartphones more affordable and ensuring the viability of local mobile manufacturing when compared to completely assembled (CBU) imports.

This balanced approach, according to the PTA, would not only lower the cost of smartphones but also deter illegal imports and illicit activities such as International Mobile Equipment Identity (IMEI) manipulation. This viewpoint was incorporated into the briefing material for a Senate Standing Committee on Cabinet Secretariat meeting on August 21, where the authority and Pakistan Customs authorities were to provide lawmakers with information on the valuation of imported mobile phones, including the reassessment of older models and the restructuring of related taxes.