PTA Tax Reduction on Mobile Phones Likely in Budget 2026-27

Pakistan may soon see relief in mobile phone taxation as the National Assembly Standing Committee on Finance has recommended reducing PTA-related taxes in the upcoming Budget 2026-27.

Government Considers Lower PTA Taxes on Smartphones

During a recent meeting, the committee reviewed the current taxation framework on both imported and locally assembled mobile devices. Officials from the Federal Board of Revenue (FBR) confirmed that the proposal to reduce taxes will be considered in the next fiscal budget.

The move comes amid growing concerns over the high cost of mobile phone registration and import duties, which many believe are limiting access to modern technology in Pakistan.

High Import Duties on Phones Under Review

According to officials, imported mobile phones priced above $500 currently face a tax burden of approximately Rs. 76,000, translating to an effective tax rate of around 54 percent. Devices in the $700–$750 range are taxed even higher, reaching nearly 55 percent.

In comparison, locally assembled or manufactured phones are taxed at a significantly lower rate of around 25 percent, highlighting a policy shift aimed at promoting domestic production.

FBR Rules Out GST Reduction for Now

Despite discussions on overall tax reduction, FBR officials clarified that there is currently no plan to reduce the 18 percent General Sales Tax (GST) applied to mobile phones. Additionally, withholding tax on high-end devices—around Rs. 11,500—will remain unchanged for now.

This indicates that any potential relief may come from adjustments in import duties rather than indirect taxes.

Lawmakers Push for Transparent Mobile Tax Policy

Committee Chairman Sayed Naveed Qamar stressed the importance of encouraging access to modern technology, stating that it plays a key role in economic development.

He questioned the logic of imposing additional income tax when GST is already applied and called for a clear, consistent, and transparent mobile phone taxation policy in the upcoming budget.

The proposed changes, if implemented, could make smartphones more affordable and reduce uncertainty for consumers and importers alike.