PTA Confirms Tax on Old and New Phones is Still the Same

While the Federal Board of Revenue (FBR) is responsible for determining and collecting mobile phone taxes, the Senate Standing Committee on Cabinet Division was informed that Pakistan's mobile phone registration system does not distinguish between new and applied phones for tax purposes.

Key points

• Google to Invest $500, 000 to Enable Digital Citizenship and AI Safety in Pakistan.
• Committee Chairman Senator Rana Mahmood-ul-Hassan remarked the GSMA had cautioned that Pakistan's existing mobile phone taxes could affect the rollout and performance of 5G services.
• Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
• According to FBR authorities, the previous federal budget introduced a 20 percent annual reduction in customs duty on mobile phones, with the reduction scheduled to continue until 2030.
• While customs authorities calculate applicable duties under Article 25 of the Customs Act, different valuation methods are applied for new and employed phones.

PTA Member Enforcement Dr. Khawar Siddique Khokhar informed the committee that mobile phones are registered when they connect to Pakistani networks. He clarified that the Pakistan Telecommunication Authority (PTA) does not impose or collect mobile phone taxes. Govt Launches FBR Mobile App for Small Shop Owners.

While customs authorities calculate applicable duties under Article 25 of the Customs Act, different valuation methods are applied for new and employed phones. They continued that a fixed duty applies to each phone based on the applicable assessment.

Dr. Khawar remarked the FBR determines the tax linked to a mobile phone through its IMEI number, and the registration system itself does not classify phones as new or employed.

Nevertheless, customs authorities can distinguish between new and employed phones when inspecting commercial consignments arriving in containers. Consequently, the tax on new and applied phones in such consignments can differ depending on customs valuation.

Although batteries and casings are still largely not produced in Pakistan, the committee was additionally informed that mobile phones are being manufactured locally.

Dr. Khawar remarked the Engineering Development Board is working on a new policy for the mobile phone industry.

Meanwhile, the PTA official additionally stated millions of mobile phones with fake IMEI numbers had been blocked. He reiterated that mobile phone taxes are collected by the FBR, not the PTA.

FBR authorities clarified that while the FBR collects the taxes, the National Tariff Commission determines the tariff.

Dr. Khawar remarked the PTA had repeatedly advocated rationalising mobile phone taxes. According to The committee chairman additionally, overseas Pakistanis were pleased that individuals were no longer routinely asking them to bring mobile phones from abroad.

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