Pakistan’s federal government is considering proposals to ease Pakistan Telecommunication Authority (PTA) taxes on mobile phones brought into the country by overseas Pakistanis, Minister for Parliamentary Affairs Tariq Fazal Chaudhry told the Senate on Thursday.
The remarks came during the Senate’s question hour session after Senator Abid Sher Ali raised concerns over heavy taxation and registration charges imposed on smartphones carried by expatriates visiting Pakistan.
Tariq Fazal said overseas Pakistanis had repeatedly demanded relief in PTA mobile taxes during overseas conventions held in Pakistan. He acknowledged that many expatriates faced difficulties because their imported phones worked only for a limited time before authorities blocked services unless users paid the required PTA duties and taxes.
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“Mobile phones brought from abroad remained functional for a limited period of a few weeks, after which services were suspended unless the prescribed PTA tax was paid,” the minister told lawmakers.
He added that the government was seriously examining different proposals aimed at reducing the burden on overseas Pakistanis, particularly frequent travelers and families visiting the country.
The minister noted that PTA tax rates varied depending on the value and model of the device. He also linked the proposed relief measures to broader government efforts aimed at facilitating overseas Pakistanis amid improving economic indicators and growing foreign investment interest in Pakistan.
Debate over mobile taxes intensifies
The development comes weeks after the National Assembly Standing Committee on Finance and Revenue directed the Federal Board of Revenue (FBR) and the Tax Policy Unit to examine possible rationalisation of duties and taxes on imported mobile phones in the federal budget for 2026-27.
During the committee meeting chaired by Syed Naveed Qamar, lawmakers discussed concerns regarding high taxes on imported devices and their impact on consumers, overseas Pakistanis, and the digital economy.
According to officials, there was an initial proposal to reduce the sales tax on completely built unit (CBU) mobile phones priced above $500 from 25% to 18%. Phones imported below the $500 threshold currently attract 18% sales tax.
However, Head of the Tax Policy Unit Dr Najeeb informed the committee that authorities had limited fiscal room to reduce the standard 18% sales tax and withholding income tax on imported phones.
“There is no space to reduce the standard rate of 18% sales tax on imported mobile phones, as well as withholding income tax,” he told the meeting.
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Pakistan currently applies a combination of customs duties, sales tax, withholding tax, and PTA registration charges on imported smartphones. The taxes vary significantly depending on the model and declared value of the device.
Overseas Pakistanis seek easier registration rules
Overseas Pakistanis have frequently criticized the PTA mobile registration regime, arguing that the taxes often exceed reasonable limits for premium smartphones.
Under the existing Device Identification Registration and Blocking System (DIRBS), overseas Pakistanis can temporarily use a foreign mobile device for up to 120 days without paying PTA duties. After that period, the phone requires official registration and payment of taxes to continue operating on local networks.
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Analysts say the government faces a difficult balancing act between protecting tax revenues and encouraging digital connectivity and overseas remittances.
Lawmakers in recent months have increasingly called for a more flexible framework that supports overseas Pakistanis without significantly hurting government revenues.
