Pakistan moving toward relief on mobile taxes as PTA levy reform advances

ISLAMABAD: Lawmaker Kasim Gillani has said that recent reforms in mobile phone taxation and registration policy represent a “step forward” for consumers, while reiterating calls for the complete abolition of the PTA tax.

Speaking to reporters, Gillani said the issue had long been a public demand and had been under discussion for several months within parliamentary forums.

“This is a very old and long-standing demand of the public. We had been working on this matter since December, and I personally took the amendment regarding the PTA tax to the finance committee.”

He noted that while recent measures by the Federal Board of Revenue (FBR) fall short of expectations, they still mark incremental progress.

“The recent step taken by the FBR is insufficient, but we still welcome it because it is at least a step forward,” he said.

Duty cuts on imported and mid-range phones

Gillani highlighted reductions in duties on imported mobile phones, saying regulatory duty had been reduced by 20 percent, with further cuts promised in the coming year.

“Regulatory duty on imported mobile phones has been reduced by 20 percent, which we welcome. There is also a commitment that this will be reduced further next year,” he said.

He also pointed to relief measures for mid-tier smartphones, particularly those priced between $200 and $300.

“Customs duty on mid-tier phones, meaning devices in the $200 to $300 range, has been reduced. This reduction in the slab has also provided relief to the public.”

Call for complete abolition of PTA tax

Despite the reforms, Gillani stressed that the broader goal remains the elimination of the PTA tax altogether.

“Our further desire is that the PTA tax should be permanently and completely abolished,” he said.

Installment plan for mobile registration

He further explained that a key development discussed in the recent finance committee meeting was the introduction of an installment-based payment mechanism for PTA taxes.

“An important development in yesterday’s finance committee meeting was the creation of an enabling provision in the finance bill, under which the PTA and FBR will jointly design an installment plan,” he said.

According to him, the purpose of the proposed system is to ease the financial burden on consumers.

“The aim is to ensure people do not have to pay Rs100,000, Rs150,000 or Rs200,000 in one go. Instead, they will be able to pay the PTA tax in monthly installments,” he said.

Wider consumer relief expected

Gillani said the installment facility would not only help increase mobile phone registration but also reduce the hardship faced by consumers forced to make large upfront payments.

“We consider this a welcome step because it will allow more mobile phones to be registered, and it will also remove the difficulty and stress people face when paying large lump-sum amounts,” he said.