Call to review high smartphone taxes to improve digital access in Pakistan

Member of the National Assembly Syed Ali Qasim Gilani has urged the Standing Committee on Finance to immediately review the unusually high taxes imposed on mobile phones. He said the existing tax structure is preventing millions of Pakistanis from accessing digital services and is slowing down the country’s technological progress.

According to media reports, Gilani raised the concern in a letter sent to members of the committee, stating that smartphones have become essential for education, business, and access to government and financial services.

He noted that the high rates of import duty, sales tax, and registration fees imposed by the Federal Board of Revenue (FBR) and the Pakistan Telecommunication Authority (PTA) have pushed mobile phones beyond the reach of ordinary citizens.

Gilani highlighted that mobile phones priced above 500 US dollars are now subject to a 25 percent sales tax in addition to an 18 percent general sales tax. Locally assembled and imported phones are also burdened with further charges, including fees collected under the Device Identification Registration and Blocking System (DIRBS).

He said these combined costs have created serious obstacles for consumers, particularly those with low incomes and individuals purchasing smartphones for the first time.

“Mobile phones are no longer a luxury but a necessity for economic and social inclusion,” Gilani said, adding that the current tax burden is hindering efforts toward digital inclusion, raising business costs, and limiting the potential of the country’s expanding online services sector.

He warned that such policies could slow innovation and weaken Pakistan’s competitiveness in the global digital economy.

Gilani urged the government to adopt a balanced policy that ensures national revenue while making smartphones more affordable and supporting the growth of technology. He called on the finance committee to take up the issue urgently under its financial reform agenda.