The government of Pakistan is considering easing taxes on smartphones in order to make mobile devices more affordable for the public. The proposal is currently under discussion among regulators and tax authorities as part of efforts to improve digital access across the country.
At present, many smartphones in Pakistan are expensive because of high import duties and registration charges. These taxes are collected mainly by the Federal Board of Revenue, while the Pakistan Telecommunication Authority manages device registration through the IMEI system. High duties often raise the retail price of imported phones significantly compared with other regional markets.
Officials say smartphones are no longer luxury products. They are widely used for online education, digital banking, e-commerce, and small business activities. Because of this, policymakers believe lowering taxes could help more people access modern digital services.
Another reason for reviewing the tax system is the large number of unregistered phones in the country. Experts believe that high taxes encourage grey-market sales and discourage users from officially registering their devices. Reducing duties could encourage legal imports and increase compliance.
According to government data, billions of rupees are collected each year from mobile-related taxes. However, policymakers are now studying whether moderate tax reductions could expand the legal market and improve overall revenue through better registration and higher sales.