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Recommendations to NA body seek 50 per cent reduction in PTA tax

News Desk

Apr 17

After weeks of deliberations, a whopping 50 per cent reduction in the Pakistan Telecommunication Authority (PTA) tax on mobile phone devices could be just around the corner, it has emerged.

According to Member National Assembly (MNA) Syed Ali Kasim Gillani, who among other lawmakers had raised the issue of excessive PTA taxes in the Lower House, has said that the National Assembly’s Finance Committee has unanimously recommended to the federal government and the Finance Ministry to slash the same by 50 per cent.

This, he said, comes after the submission of reports from the Federal Board of Revenue (FBR) and PTA, and highlighted that the tax had impacted their affordability, hampering the country’s digital revolution.

“The National Assembly's Finance Committee has unanimously recommended that the PTA tax being charged on mobile phones be halved,” Gilani said in a video, expressing gratitude to Committee Chairman Naveed Qamar and all members for their continuous deliberation.

It merits a mention that PTA tax has become a recurring topic of debate among consumers and policymakers alike, as it directly affects the affordability and accessibility of mobile devices in the country.

Introduced as part of regulatory measures to curb smuggling and ensure compliance with import duties, the tax has had a significant impact on the smartphone market, influencing both pricing and consumer behaviour.

While proponents argue that the levy helps formalise the industry and generate revenue for the state, critics highlight its burden on ordinary citizens who rely on mobile phones for communication, education and business.

The broader implications of the PTA tax extend beyond economics, touching on issues of digital inclusion, technological advancement and Pakistan’s ability to keep pace with global connectivity trends.

It may also be noted that while “PTA tax” is the colloquial term for customs duties, sales tax and regulatory fees imposed by the FBR to activate them on Pakistani networks, it is not a tax imposed by the PTA itself, but by FBR, with costs varying based on the phone's value and model.

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