Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja took an unusually direct public stand on smartphone taxation on June 11, 2026, holding up a placard inside the National Assembly that read “Phones Are a Need, Not a Luxury” and carrying the hashtag ReducePTATax during a live session. The demonstration by a sitting cabinet minister against fiscal policy enforced by her own government’s Federal Board of Revenue is a rare public display of internal disagreement on a matter that has been generating growing pressure from technology sector stakeholders, consumer groups, and parliamentarians alike.
The Pakistan Telecommunication Authority tax represents the combined government duties citizens must pay to register their devices, with the Federal Board of Revenue applying and collecting these funds directly while PTA merely provides technical support through its Device Identification Registration and Blocking System. Currently, buyers can register their phones via a Computerised National Identity Card for local purchases or a passport for travel-based registrations, with the passport registration route typically remaining cheaper for consumers. The combined tax burden on smartphones in Pakistan has made the country one of the more expensive markets in the region for device ownership, with taxes on mid-range and flagship handsets adding tens of thousands of rupees to the effective purchase price and pushing a large share of the market toward unregistered devices that circumvent the DIRBS system entirely.
Ali Kasim Gillani responded positively to the minister’s demonstration on X, noting that Shaza Fatima has consistently been a strong advocate for reducing the excessive PTA tax in committee meetings and press conferences, and that the real challenge lies with the Federal Board of Revenue and the Finance Ministry, which need to recognise that a reasonable tax regime is essential for expanding digital connectivity. His characterisation of the situation as a turf issue between the IT Ministry and the finance establishment reflects a structural problem that has been visible in Pakistan’s technology policy for years: the Ministry of IT advocates for lower device taxes to improve connectivity and digital adoption, while the Finance Ministry treats handsets as a reliable source of customs and regulatory revenue, creating a persistent internal standoff that consistently resolves in favour of revenue collection over affordability.
Recently, the Directorate General of Customs Valuation lowered tax duties on 62 used and refurbished mobile models to match import duties with global market prices and bring more non-PTA phones into the official tax network. However, these tax cuts apply exclusively to used devices, with brand-new smartphones continuing to carry their original, heavily taxed valuations. For consumers wanting to check the precise tax burden on any specific device, the WeBOC device duty portal at weboc.gov.pk allows users to enter an IMEI number and retrieve full PTA tax details instantly, enabling buyers to calculate the true cost of an unregistered phone before making a purchase decision. Whether Shaza Fatima’s National Assembly placard translates into a concrete budget provision reducing mobile phone taxes in the FY2026-27 budget remains to be seen, but the public nature of the minister’s stand has put the issue firmly on the political record ahead of the budget vote.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
