Lawmaker Seeks Urgent Review of High Mobile Phone Taxes
Member of the National Assembly (MNA) Syed Ali Qasim Gilani has written to the Standing Committee on Finance, urging it to reassess what he described as extraordinarily high taxes imposed on mobile phones. Gilani warned that the current taxation system is blocking digital access for millions of Pakistanis and slowing down the country’s technological progress.
In his letter to committee members, Gilani emphasized that smartphones are no longer a luxury but a necessity. They serve as essential tools for education, business operations, and access to government and financial services. However, he noted that import duties, sales taxes, and registration fees levied by the Federal Board of Revenue (FBR) and the Pakistan Telecommunication Authority (PTA) have made these devices unaffordable for ordinary citizens.
Smartphones Are Now a Basic Need, Says Gilani
Gilani highlighted that under the current tax regime, mobile phones valued above USD 500 are subject to 25% sales tax in addition to 18% general sales tax (GST). Locally manufactured and imported devices also face additional levies, including fees under the Device Identification Registration and Blocking System (DIRBS) — a system originally introduced to curb phone smuggling and improve security.
These cumulative charges, he said, have made smartphones prohibitively expensive, especially for low-income groups and first-time users.
He argued that smartphones play a crucial role in promoting economic participation and social inclusion. By keeping communication devices out of reach, the government is effectively undermining its own digital transformation goals, which aim to expand e-governance, online education, and digital payments.
Digital Access and Economic Growth at Risk
Analysts have long noted that Pakistan’s high import taxes on electronics are among the steepest in South Asia. While the government collects significant revenue through such duties, experts warn that these policies discourage technology adoption and stifle the digital economy.
According to the Pakistan Telecommunication Authority, the country currently has over 195 million mobile subscribers, but smartphone penetration remains below 60%. With digital banking, e-commerce, and online learning expanding rapidly, limited access to affordable smartphones risks widening the digital divide between urban and rural populations.
Gilani stressed that the existing policy does not just affect consumers but also raises business costs and restricts the growth of Pakistan’s online services sector.
Call for a Balanced and Inclusive Policy
Concluding his letter, the MNA urged the government to adopt a balanced tax policy that maintains national revenue while ensuring wider access to technology.
He called on the Finance Committee to immediately examine the issue within its financial reform mandate, aiming for a framework that encourages affordability, innovation, and digital inclusion.
Affordable access to smartphones, Gilani wrote, is not just about convenience. It is about empowering citizens and enabling Pakistan’s participation in the global digital economy.
