Web Desk: The Pakistan Telecommunication Authority has backed a review of taxes and duties on mobile devices, saying a more balanced framework could improve smartphone affordability while protecting the country’s domestic manufacturing industry.
The regulator’s position comes as authorities consider changes to the taxation structure for imported mobile phones, amid concerns over consumer prices, local assembly and activity in the informal market.
According to official PTA documents, the authority’s responsibilities are limited to technical matters involving mobile devices. The Federal Board of Revenue remains responsible for determining, assessing, collecting and administering taxes and duties.
Nevertheless, the PTA supports efforts to rationalise the tax structure as part of wider government efforts to expand digital access and accelerate Pakistan’s digital transformation.
The regulator has stressed that any changes should take account of both consumers and local manufacturers rather than focusing solely on lowering the cost of imported devices.
The PTA said policymakers need to strike a balance between making smartphones more affordable and ensuring that Pakistan’s emerging mobile-device manufacturing and assembly sector remains commercially viable.
In particular, officials have cautioned against a tax structure that could make completely built-up, or CBU, phones significantly more attractive than locally assembled devices.
A carefully calibrated regime, the authority said, could help bring legitimate smartphone prices closer to consumer purchasing power while maintaining incentives for domestic production.
The regulator also linked smartphone affordability to efforts to tackle Pakistan’s informal mobile-phone market.
When officially imported devices become more affordable, consumers may have less incentive to purchase phones through unauthorised channels, potentially reducing grey-market activity and illegal imports.
The PTA also noted that stronger controls and a healthier formal market could help combat unlawful practices such as tampering with or manipulating International Mobile Equipment Identity numbers, commonly known as IMEIs.
The PTA outlined its position in a briefing prepared for the Senate Standing Committee on Cabinet Secretariat.
The committee held discussions with representatives of the PTA and Pakistan Customs on issues including the valuation of imported mobile phones, the reassessment of prices for older handset models and possible changes to fees associated with mobile devices.
The discussions come as Pakistan seeks to expand digital connectivity while addressing the competing demands of consumers, government revenue and the country’s local mobile-phone manufacturing sector.
Any changes to the existing tax regime will ultimately fall within the government’s taxation and fiscal policy framework, with the FBR retaining responsibility for administering duties and taxes.
Read more: PTA announces 180-day validity for prepaid mobile balance
