Member of the National Assembly Syed Ali Qasim Gillani has called on the Standing Committee on Finance to urgently review the high level of taxes imposed on mobile phones in Pakistan, arguing that the current regime is limiting digital access for millions of citizens. In his letter to the committee, he described the prevailing tax structure as excessive and counterproductive to the government’s stated goals of promoting digital inclusion and expanding access to technology. Gillani highlighted that smartphones have become indispensable tools for education, business, and communication, and that policies discouraging their affordability risk slowing Pakistan’s digital growth.
According to Gillani, a combination of import duties, sales taxes, and registration fees imposed by the Federal Board of Revenue and Pakistan Telecommunication Authority have significantly increased the retail cost of smartphones. He noted that phones imported with a value above USD 500 currently face a 25 percent sales tax along with an additional 18 percent general sales tax. Moreover, locally assembled and imported devices are subject to further levies through the Device Identification Registration and Blocking System, a framework originally intended to curb illegal handset imports. These cumulative costs, he said, place a heavy burden on consumers and restrict access to smartphones, particularly for low-income households and first-time users.
Gillani emphasized that mobile phones should no longer be regarded as luxury items but as essential tools that enable economic and social participation. He said that access to digital devices now underpins everything from financial inclusion and e-commerce to online education and e-governance. The current tax structure, he argued, undermines national digital transformation initiatives and raises the cost of doing business in an increasingly digital economy. High taxes not only discourage consumers but also discourage manufacturers and retailers from expanding their operations in Pakistan, reducing competitiveness and innovation in the local market.
He also expressed concern that the growing digital divide between high-income and low-income users will have long-term consequences for Pakistan’s economic development. With smartphones serving as the primary access point for internet connectivity for a majority of the population, affordability remains critical for sustaining digital growth. Gillani urged the Standing Committee on Finance to adopt a more balanced approach that ensures revenue generation for the government while facilitating broader technological adoption. He proposed that policymakers should explore targeted relief or tiered taxation based on device categories to make smartphones more accessible to the general population.
In his communication, Gillani reiterated that the government’s vision of a connected Pakistan cannot be achieved without affordable access to devices that serve as gateways to digital participation. He called on relevant authorities to review the issue within the committee’s mandate on public finance and economic reform and to prioritize measures that encourage investment and inclusion in Pakistan’s growing technology ecosystem.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
