PTA has confirmed that Pakistan’s mobile phone registration system does not distinguish between new and used phones for tax purposes, with the Federal Board of Revenue responsible for determining and collecting mobile phone taxes. The clarification was shared during a briefing to the Senate Standing Committee on Cabinet Division, where officials addressed questions around how mobile phone taxation is structured and applied across the country.
PTA Member Enforcement Dr. Khawar Siddique Khokhar told the committee that mobile phones are registered once they connect to Pakistani networks, and clarified that PTA itself does not impose or collect any mobile phone taxes. According to FBR officials present at the briefing, the previous federal budget introduced a 20 percent annual reduction in customs duty on mobile phones, with this gradual reduction set to continue until 2030. Officials explained that different valuation methods apply to new and used phones, with customs authorities calculating applicable duties under Article 25 of the Customs Act, and a fixed duty applied to each phone based on its specific assessment. Dr. Khawar added that FBR determines the tax linked to a mobile phone through its IMEI number, and that the registration system does not classify devices as new or used at that stage. However, he noted that customs authorities are able to distinguish between new and used phones when inspecting commercial consignments arriving in containers, meaning tax treatment for such bulk shipments can vary based on customs valuation.
The committee was also informed that mobile phones are now being manufactured locally within Pakistan, although components such as batteries and casings are still largely not produced domestically. Dr. Khawar noted that Engineering Development Board is working on a new policy aimed at supporting the mobile phone manufacturing industry going forward. Committee Chairman Senator Rana Mahmood ul Hassan raised concerns during the session, noting that GSMA had previously warned that Pakistan’s existing mobile phone taxes could affect the rollout and performance of 5G services in the country.
PTA officials also shared that millions of mobile phones with fake IMEI numbers have been blocked as part of ongoing enforcement efforts, while reiterating that mobile phone taxes are collected exclusively by FBR rather than PTA. FBR officials further clarified that while FBR is responsible for collecting the taxes, it is the National Tariff Commission that determines the applicable tariff structure. Dr. Khawar noted that PTA had repeatedly advocated for rationalizing mobile phone taxes, while the committee chairman observed that overseas Pakistanis were reportedly pleased that people were no longer routinely asking them to bring mobile phones from abroad, suggesting some easing in dependency on informal import channels.
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