Smartphone taxes in Pakistan under scrutiny, likely to drop

Gilani, member of NA, is advocating for lower import taxes and registration fees, which he believes are currently unjust and unaffordable
An undated image of Samsung smartphones. — Unsplash

An undated image of Samsung smartphones. — Unsplash

Following a lawmaker's outcry, high taxes on smartphones and mobile device registrations in Pakistan have come under fire, as the government is set to take action against the unaffordable smartphone taxes in Pakistan.

Lawmaker Qasim Gilani on Wednesday announced that a parliamentary committee will review the inflated tariffs on mobile devices next month.

Gilani, a member of the National Assembly, has been advocating for lower import taxes and registration fees, which he believes are currently unjust and unaffordable.

The lawmaker noted that high-end devices have become essential for work, education, and other purposes, rather than mere luxury items. In response, the government assured him that the matter would be presented to the Finance Committee on December 3, with officials from the Federal Board of Revenue (FBR) expected to attend.

Gilani is also said to be seeking a meeting with Prime Minister Shehbaz Sharif and has gathered support from various political leaders.

Currently in Pakistan, a mobile device priced over USD 500 incurs Rs27,600 in taxes plus 17% sales tax under passport registration, with even higher rates for CNIC registration.

Industry stakeholders argued in favour of lower smartphone taxes, stating that these steep costs restrict access to essential digital tools, hinder freelancers, and derail Pakistan’s digital growth.

As Pakistan's seeks greater digitalisation, addressing excessive smartphone taxes is believed to significantly enhance affordability and support long-term development in the IT sector.