The Senate Standing Committee on Cabinet Division was informed that Pakistan’s mobile phone registration system does not distinguish between new and used phones for tax purposes, while the Federal Board of Revenue (FBR) is responsible for determining and collecting mobile phone taxes.
PTA Member Enforcement Dr. Khawar Siddique Khokhar told 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.
According to FBR officials, the previous federal budget introduced a 20 percent annual reduction in customs duty on mobile phones, with the reduction scheduled to continue until 2030.
Different valuation methods are used for new and used phones, while customs authorities calculate applicable duties under Article 25 of the Customs Act. They added that a fixed duty applies to each phone based on the applicable assessment.
Dr. Khawar said 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 used.
However, customs authorities can distinguish between new and used phones when inspecting commercial consignments arriving in containers. As a result, the tax on new and used phones in such consignments can differ depending on customs valuation.
The committee was also informed that mobile phones are being manufactured locally, although batteries and casings are still largely not produced in Pakistan.
Dr. Khawar said the Engineering Development Board is working on a new policy for the mobile phone industry.
Committee Chairman Senator Rana Mahmood-ul-Hassan said the GSMA had warned that Pakistan’s existing mobile phone taxes could affect the rollout and performance of 5G services.
The PTA official also said 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 officials clarified that while the FBR collects the taxes, the National Tariff Commission determines the tariff.
Dr. Khawar said the PTA had repeatedly advocated rationalising mobile phone taxes. The committee chairman also noted that overseas Pakistanis were pleased that people were no longer routinely asking them to bring mobile phones from abroad.
The post PTA Confirms Tax on Old and New Phones is Still the Same appeared first on ProPakistani.