PTA and FBR taxes on mobile phone should end, says Qasim Gillani

National Assembly Member Syed Qasim Gillani has demanded that the Standing Committee of Finance seriously look into the unusually high taxes imposed on mobile phones. He said that recent tax is the biggest hurdle for millions of Pakistani’s to access digital facilities and are also slowing the pace of technology development.

According to media reports, the letter sent to the committee members has said that now smartphones have became inaccessible for eduction, business and governmnet, and financial services.

According to him, the fees of import duty, sales tax, and registration fees imposed by the Federal Board of Revenue and Pakistan Telecommunication Authority have made the mobile phone inaccessible for the general public.

He also told that the mobile phones priced more than 500 American Dollars will have 25% sales tax and 18% general sales tax. Taxes are also imposed on locally manufactured and imported phones, in which device and notification registration and blocking system fees are also included.

Gilani also said that all these expenses are the biggest hurdle for consumers, especially low-income people and those buying phones for the first time. He said that mobile phones are no longer a thing of enjoyment but an important part of our social and economic participation. This burden of tax is harming the efforts of digital participation, increasing the expenses of business, and limiting the online service sector.

He also stated that these policies can reduce the pace of innovations and weaken the competition in the international digital economy. He has demanded that the government to adopt a balanced policy that helps in the accessibility of low-cost smart-phones and also supports the national revenue. Gilani has also requested the committee to take immediate action on this issue within its scope of financial reforms.