Government considering relief in PTA mobile phone taxes for overseas Pakistanis
By Tanveer Ahmed :
The federal government is considering proposals to ease Pakistan Telecommunication Authority mobile phone taxes for overseas Pakistanis visiting the country, according to Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry.
Speaking during a Senate session on Thursday, the minister said expatriate Pakistanis had repeatedly raised concerns over high PTA taxes on mobile devices during overseas conventions and government engagement events.
Responding to a supplementary question during the question hour, Tariq Fazal Chaudhry said many overseas Pakistanis faced difficulties using phones brought from abroad because the devices remain operational for only a limited period before services are blocked unless the required taxes and duties are paid.
Under Pakistan’s current device registration system, imported smartphones must be registered through the PTA’s Device Identification Registration and Blocking System (DIRBS), which imposes taxes and duties based on the value and category of the handset.
The minister noted that tax rates vary depending on mobile phone models and prices, adding that the government was now seriously examining options to reduce the burden on overseas Pakistanis.
He said the administration was making broader efforts to facilitate expatriates, particularly at a time when Pakistan was seeking to strengthen economic recovery and attract foreign investment and remittances.
Overseas Pakistanis are considered a major source of foreign exchange for the country, sending billions of dollars in remittances annually. In recent years, successive governments have introduced measures aimed at improving services and incentives for the diaspora community.
The latest discussion comes weeks after the National Assembly Standing Committee on Finance and Revenue directed the Federal Board of Revenue and the Tax Policy Unit to review taxes and duties on imported mobile phones ahead of the 2026–27 federal budget.
According to reports discussed during the committee meeting, there was an initial proposal to reduce sales tax on high-end imported mobile phones from 25 percent to 18 percent for completely built-up units valued above $500.
Currently, imported mobile phones priced below $500 are already subject to an 18 percent sales tax, while more expensive devices attract higher taxation and additional duties.
The issue was discussed during a committee session chaired by Syed Naveed Qamar at Parliament House, where lawmakers debated ways to rationalise Pakistan’s taxation framework on technology imports.
Naveed Qamar reportedly urged tax authorities to move beyond traditional import restriction policies and develop alternative approaches that could support consumers and the digital economy without significantly reducing government revenues.
However, officials from the Tax Policy Unit indicated there was limited room for major tax reductions due to fiscal constraints.
Dr Najeeb, head of the Tax Policy Unit, informed the committee that lowering the standard 18 percent sales tax or withholding income tax on imported phones would be difficult under the current revenue structure.
Pakistan currently applies minimum withholding tax on imported mobile devices under its “pay as you earn” policy framework, adding further costs for consumers purchasing smartphones from abroad.
High taxes on imported phones have remained a contentious issue in Pakistan, particularly among overseas Pakistanis and technology users, many of whom argue that duties significantly increase device costs and discourage access to modern digital technology.
Industry analysts say any relaxation in PTA taxes for overseas Pakistanis could provide temporary relief for travellers and expatriates, although broader reforms to the taxation structure would likely be needed to make smartphones more affordable for the wider population.
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