PTA Tax Cut on Mobile Phones Likely to Be Reviewed in Budget 2026-27

Suspenseful image showing smartphone with tax symbol and Pakistan budget discussion about PTA mobile tax reduction.

Islamabad: The National Assembly Standing Committee on Finance has proposed a reduction in taxes on mobile phones, signaling possible relief for consumers in the upcoming federal budget 2026-27.

During a recent meeting, lawmakers reviewed the current taxation system on both imported and locally assembled smartphones. Officials from the Federal Board of Revenue (FBR) assured the committee that the proposal would be considered in the next budget cycle.

The briefing was led by FBR Chairman Rashid Mahmood Langrial along with representatives from the Tax Policy Office. Officials shared key details about the existing tax structure applied to mobile devices in Pakistan.

According to the briefing, imported smartphones priced above $500 currently face a heavy tax burden of nearly Rs. 76,000, translating to an overall tax rate of around 54 percent. Meanwhile, devices in the $700 to $750 price range are taxed even higher, at approximately 55 percent.

Officials further explained that imported phones are taxed at about 54 percent of their value, while locally assembled or manufactured devices benefit from a significantly lower tax rate of around 25 percent.

The committee was also informed that mobile phones are subject to an 18 percent General Sales Tax (GST), along with concessional income tax and a withholding tax of nearly Rs. 11,500 on high-end devices. However, FBR officials clarified that there is currently no room to reduce the GST or withholding tax rates.

Committee Chairman Sayed Naveed Qamar stressed the importance of promoting modern technology in Pakistan, noting its role in driving economic growth. He argued that the imposition of additional income tax on mobile phones is unjustified when sales tax is already in place.

He also called for a clear and transparent taxation policy for mobile phones in the upcoming federal budget, aiming to eliminate uncertainty and support the growth of the digital economy.